Once you lock into your homeowners insurance, you can set cruise control and assume it will stay pretty much the same, right? Wrong. There are many factors that can increase your rates. Read on to learn about six common situations that can cause premiums to hike, and make sure to evaluate the pros and cons of major decisions before you implement them on your property.
Pools
Taking a dip in your own private pool during the hotter months is a nice perk. Did you know that when you install one on your property, you’re liable for everyone who enters? Homeowners insurance usually covers these structures. However, as Nasdaq points out, carriers vary in how they view pools and handle claims related to them. Have an informative chat with your agent before you break ground on the aquatic setup of your dreams, especially if you have your eye on a diving board or slide.
Trampolines
Just as many parents worry about trampolines, insurance companies view them as a huge liability. According to Reuters, in 2010 alone there were 92,159 emergency room visits resulting from trampolines. Maintain complete transparency with your carrier if you do decide to go for it, and don’t be surprised if your rates climb. It’s also important to anchor your trampoline so it doesn’t get caught in a wind gust, and make sure it’s not too close to other structures.
Weather Patterns
Every region faces different weather-related difficulties. People living along the coasts are no strangers to hurricanes, while the population in the middle of the country knows tornado season all too well. It’s a good idea to research homeowners insurance quotes online to find one with adequate terms, or to see if you need to purchase additional coverage. Many policyholders are surprised to find out that many standard policies don’t cover earthquakes or flooding. If you’re subject to repeated weather catastrophes, your claims will drive up your premiums in the long run as an occupational hazard of where you live.
Dogs
You love Fluffy and know that she wouldn’t hurt a fly, right? That’s not necessarily how insurance companies see it. Dog bite claims usually reside under the liability part of your homeowners insurance plan. U.S. News and World Report sums it up well by quoting a spokesman for the Insurance Information Network of California, Pete Moraga: “Depending on the type of dog you have, some insurers may exclude the dog or add a surcharge because you have a dangerous dog. If you have a vicious dog and don’t keep him away from people, that may be a cause for nonrenewal or getting your premiums increased.”
Poor Maintenance
The Insurance Information Institute states that positive actions like updating the roof and any old systems that increase the chance of flooding or fire damage can lower insurance premiums. The inverse is also true. Outdated systems like plumbing, electric, heating, and exterior can lead to more claims and higher rates for you. If you have an older home, or aren’t sure about the status of what’s in your walls and basement, it’s probably time to see what you can improve.
Bad Credit History
It behooves you to keep your credit score up, as providers in some states use it to gauge the likelihood of you filing a claim. If your score drops, you could pay more.
The best way to figure out if any of these factors will affect you is to pick up the phone and speak directly with your homeowners insurance provider. From there, you can make an informed decision on whether to take on responsibilities that may raise your rates, or whether to avoid them all together.
