Premium Raise

Posted on January 19th, 2016

Homeowner Insurance can be hard to choose because of the variations in coverage and such a wide array of Insurance companies to look at. You have found several companies you like, but they all seem to be offering you high premiums. Here are somethings that could be raising your premiums.

Pets

Pets are the best thing in the world. They make you happy when you are sad, and they are ecstatic when you return after a long day of work. Sadly, they can be one of the reasons of why your Homeowners Insurance Premium is higher.  With 10,000 big cats, 3,000 apes, and 8.8 million reptiles, it may not surprise you that Homeowners Insurance will cost more for pets. Americans seem to have an exotic taste, but it is not only exotic pets that will raise your premium. Dogs make up about 33% of all homeowners insurance claims where 50% of those occur on the homeowners property. With the exception of Michigan and Pennsylvania, insurance providers are known for having certain breeds causing an increase in premiums for the owners of those dogs. Finding a pet friendly company will also prevent you from being denied by your company. Check to see if your dog is blacklisted.

Home Accessories

Some people shop for a house based off the “toys” that come with the house, but some of these toys can actually increase your premium. Trampolines are great fun for the kids, but they are a huge risk factor. From 2002 to 2011, more than 1 million emergency level injuries have occurred due to trampolines, and the injuries occuring- broken bones, spine inujuries, skull injuries, etc- are not to be taken lightly and cost a pretty penny. With the stats against trampolines, it is within reason for insurance companies to increase your premium.

Pools are another ideal purchase for people, but they can really increase your premium in a number of ways. The first reason they are a huge liability issue. Kids love to have fun, and sometimes while having fun they forget to stay safe. They run on the wet cement and flipping off the edge of the pool. Neighborhood kids might try to sneak in late at night. Or a kid is simply trying to get a toy out and fall in without being able to swim. The number of accidents a pool can cause are numerous and make insurance companies weary. They may suggest putting on a pool cover or a self-locking fence around the pool to help protect you from the increase in insurance or simply from having an accident occur without you around.

Second, if the pool is nice enough, you might want to insure the pool in case property damage were to occur. In-ground pools are expensive and ideal targets to be damaged if someone were to find the opportunity. For example, if one were to remember an early 2000’s Nickelodian show called Rocket Power, you would remember an episode where the kids emptied their neighbors pool and turned it into a skating bowl. They caused a lot of damage by skating boarding in it. Increasing your homeowners insurance would cover the damage caused by an incident like this.

trampoline

Location

Location can have a huge impact on your homeowners insurance. Your insurance on your home will vary a lot from small town, rural area, and big city. A bigger factor is the neighborhood you would choose to reside in. A neighborhood with bars on the doors and windows where crimes are prevalent is not going to help keep your insurance down. The more likely it is for your house to be damaged as a result of a crime or accident, the more your insurance will increase. Sadly, it does not help clean up bad neighborhoods when you reward good families to stay out of them.

Home Age

The older your home the more your insurance could increase. The argument would be that the house is less stable and safe than a newer home. I might argue the opposite as the time we used to take building a home was months upon months longer than what we do now. We never used to cheap on materials either, but that is not the point of this paragraph. The house’s age may affect your insurance simply because the homeowners insurance is anticipate you to need an update soon such as a new roof or siding. Another reason they would be anticipating damage would be if they knew a porch, garage, part of the house, or the shed were about to collapse. We owned a house which had a porch on it that would have collapsed had we let snow build up on it. The more likely they are to replace damage, the more likely they will increase your premium.

Having the wrong pet, the wrong accessories, the wrong location and an old home can increase your Homeowners premium. If you take the right steps, you can prevent an increase in it. Talk to your insurance agent today and ask if you have something increasing your premium or if there is a way for you to lower it.