*Loan,banking and credit>>>homeowner insurance

I know your homeowners insurance is suppose to go up every year, but what is normal?

My homeowners insurance cost has gone up from $520 last year to $609 this year. Thats a 17% increase . Is that too much of an increase?

In most cases yes. An inflation gaurd will generally increase your Coverage A limit (dwelling) by about 6%. That does not mean your premium goes up by the same amount. What you probably have is either a change to your account ie an endorsment of sorts, a reavaluation, claims will effect you as well. If none of these are the case it could be a disappearing credit. By that I mean a new homebuyer credit that decreases over a few years. 10% your first year, 6% the second year and 3% your third. None after that. If this is a new policy that's probably what's happening to you.

You're actually lucky it's only that much. In some places homeowner's insurance has tripled and quadrupled this year.
Every year the insurance company looks at increased costs of building materials and increased costs of labor and they determine how much additional coverage your house needs in order to be rebuilt. I would call my agent and ask how much of the rate increase is from additional coverage and how much is from a rate increase. You could ask to see how much you would save if you raised your deductible. Also ask to review all the possible discounts.
http://www.insuremyhouse.com
The short answer is "There is no "normal".

Devastating hurricanes and floods have caused trmendous increases in homowners' insurance rates. You can try to go witha local company if you live ina low-risk area - they usually have much lower rates.

I go through USAA for mine and they actually lowered my rates last year (from $1100 to $900), as they had stopped writing policies along most of the gulf-coast states (where claims from Katrina, etc have BK'd maaaaany companies).
Depends on why it increased. The VALUE of the house normally should go up about 5% per year. So you need to compare that. Also, if you have a really low deductible (like $100 or $250) you'll see much faster rate increases, so you might want to consider raising it $500 to $1000.

You can compare line by line, why your homeowners policy went up, between this year and last year. Your increase could well be a combination of a rate increase AND a coverage increase, but maybe you lost a discount, also. You should check with your agent to be sure. And ask them to shop it out for you.
agent, 21+ years, in HOUSTON, where we NEVER see homeowners premiums that low