4 Things That Can Raise Your Home Insurance Rates

Insurance Articles

Homeowner's insurance is necessary for anyone who owns a home. However, there are some things that can make your insurance rates higher than they need to be. If you're trying to figure out why your rates are so high or what you can do to lower them, you need to know these factors that can raise your rates.

Home's Claim History

The Comprehensive Loss Underwriting Exchange (CLUE) allows insurer's to share claim information with each other. For example, if you just moved into your home and you're trying to get homeowner's insurance, the company that used to insure your home will share the previous claims with the company that you are applying with. And the claim history of your home is an important factor in your homeowner's insurance rates. Even if you didn't live in your home, the claims by the previous owner could seriously affect your premiums. If claims have been filed for multiple thefts, it could make your insurance company worry that your neighborhood is turning into a high crime area. If claims have been filed for water or fire damage, it could make your home seem vulnerable to future damage.

Attractive Nuisances

An attractive nuisance is a dangerous thing on your property that can attract people and cause a liability risk. Children are the most important aspect of this issue. Children will see an attractive nuisance on someone's property and want to play with it. They could wind up injured or worse, and the home insurance claim ends up paying for the accident. Because of this, having them on your property can raise your rates from the start and even make it difficult to find insurance at all. Some companies will refuse to insure people who have certain dangerous things on their property. Attractive nuisances can include the following:

  • Tree houses
  • Trampolines
  • Swimming pools
  • Hot tubs
  • Playground equipment
  • Ponds

If you are considering buying any of these things and you already have homeowner's insurance, you will want to call your insurance first to discuss it with someone and make sure it won't be an issue.

Your Neighborhood

It's frustrating to think that you're at the mercy of your neighborhood, but unfortunately, that can be the case. If your neighbors are dealing with break-ins and filing homeowner's insurance claims, your homeowner's insurance can rise as a result. It seems unfair, but it puts your home at a higher risk of receiving a claim if burglars are frequenting your neighborhood. If you have noticed your premiums going up due to this issue, ask your insurance company if getting a security system can lower your rates. If burglars are frequenting your neighborhood, you might want one anyway.

Your Pooch

Your dog may be part of the family, but your homeowner's insurance doesn't see it that way. Even if you have the friendliest dog on the planet, his or her breed can cause your rates to climb. Some breeds are considered a higher risk than others because they are statistically more likely to attack people. These breeds include the following:

  • Pit Bulls
  • Dobermans
  • German Shepherds
  • Chow Chows
  • Huskies
  • Akitas
  • Rottweilers
  • Boxers

When trained properly, any of these dogs can be sweet family pets. But some are still protective by nature, no matter how well-trained they are; so if you have one of these breeds, your insurance company might think that you have a higher chance of having to make a dog bite claim.

Just like any other type of insurance, the insurance company has to factor in how much of a risk you are. The more likely you are to make a claim, the higher risk you become. All of these issues make someone a higher risk, so it can raise your rates.

For more information and options for how you can monitor and lower your insurance rates, talk with a local agent or visit websites like http://www.unitedsecurityagency.com.


1 June 2016

Preparing for the Future

Ten years ago, I married my best friend in a beautiful, intimate ceremony. My husband and I have been nearly inseparable and we’ve enjoyed this special time in our lives where it has been just the two of us. However, we’re finally ready to have a baby. Because I only work part-time, my husband is the primary financial provider in the family. If something ever happened to him, I wouldn’t be able to instantly support myself and a child. Because my husband worries about an uncertain future, he is considering purchasing a larger life insurance policy. On this blog, I hope you will discover the best types of life insurance policies for young parents to invest in. Enjoy!