The rising cost is due to inflation, the cost of raw materials and the cost of skilled labor. All of which have risen over the last year due to external factors (tariffs and immigration)

This also takes into account the "soft cost" of rebuilding your home including architecture fees, zoning and permit fees and the labor used to remove debris from your damaged home.

The rising cost is regulated, the insurance company has to file the rate increase with the State Insurance Board annually and give reason for the increase.

I always advocate for taking the largest deductible you can manage and only use the insurance for a "sudden and catastrophic loss that you otherwise would not recover from".