Skip to main content

Ask ERIE: Why did my neighbor’s homeowners insurance premium go up, without a claim?

Pricing homeowners insurance is complex, and there are probably several reasons behind your neighbor’s homeowners insurance premium increase. They could include:

1. Inflation: Increases in the value of his dwelling, the other structures on his property and the replacement cost of his property would make his premium go up. “Though there’s an increase, it’s really a good thing since it means your property is adequately covered,” says Terry McConnell, ERIE’s vice president and manager, Personal Lines Underwriting.

2. Increased catastrophes: The increased frequency and severity of catastrophes over the past five years have made homeowners prices more volatile than auto insurance prices since you can’t exactly move your home out of harm’s way.

Sometimes, less newsworthy weather events cause the most damage. “People always think of hurricanes when they think of catastrophes, but some of our biggest losses come from thunderstorms, hail, winter storms and tornados,” says McConnell.

Insurers adjust prices based on how much damage your particular state experienced. If your state didn’t suffer much, you can typically expect little or no increase.

3. Construction costs driven by a shortage of materials: Even if a catastrophe occurs on the other side of the country, it can still have implications on your neighbor’s homeowners rate. That’s because widespread damage causes a shortage of building materials, which drives up their price for everyone. (Labor shortages increase the cost of construction projects as well.)

4. Changes in previous discounts: Finally, your neighbor might have seen an increase in his homeowners premium if some of his discounts were reduced or expired. For example, a new home discount will lessen as a home ages.

ERIE offers many home insurance values and discounts to offset any premium increases.* To learn more, visit or contact an ERIE Agent.

Insurance question have you stumped? Then email it to [email protected] for possible inclusion in an upcoming Ask ERIE column.

* Discounts are subject to eligibility criteria and applicable rate and rules. Actual savings vary.

ERIE® insurance products and services are provided by one or more of the following insurers: Erie Insurance Exchange, Erie Insurance Company, Erie Insurance Property & Casualty Company, Flagship City Insurance Company and Erie Family Life Insurance Company (home offices: Erie, Pennsylvania) or Erie Insurance Company of New York (home office: Rochester, New York).  The companies within the Erie Insurance Group are not licensed to operate in all states. Refer to the company licensure and states of operation information.

The insurance products and rates, if applicable, described in this blog are in effect as of July 2022 and may be changed at any time. 

Insurance products are subject to terms, conditions and exclusions not described in this blog. The policy contains the specific details of the coverages, terms, conditions and exclusions. 

The insurance products and services described in this blog are not offered in all states.  ERIE life insurance and annuity products are not available in New York.  ERIE Medicare supplement products are not available in the District of Columbia or New York.  ERIE long term care products are not available in the District of Columbia and New York. 

Eligibility will be determined at the time of application based upon applicable underwriting guidelines and rules in effect at that time.

Your ERIE agent can offer you practical guidance and answer questions you may have before you buy.