Cost to rebuild is on the rise. What most people don't understand is the totality of the claim payout. If you have an average home, say the rebuild is 350k. You also have personal property, say another 280k. Loss of use will pay out another 220k. So a modest home is going to cost nearly a million dollars. So your premium of 8k is a reflection of increased costs vs the projected number of claims. At you current premium it would take 125 years for an insurance company to break even on that loss.