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Risk Factors That Can Affect Your Homeowner’s Insurance Policies

These factors raise red flags for insurers and can increase the cost for homeowners.

Pets

Not every dog is man’s best friend and some insurers don’t take kindly to all breeds. Owning any breed of dog that could be considered aggressive could raise insurance rates.

Bad Credit Score

Insurers will look to see if a homeowner has paid his bills on time and check credit scores. A lower number could result in a higher premium.

Location, Location, Location

Just like in real estate, the location of the home does matter. Owners of homes located in Tornado Alley, along coast lines, in a hurricane-prone state or in an area known for sinkholes can expect to pay more for coverage.

Trampolines

Trampolines result in approximately 92,000 hospital visits each year. Most people are not aware that they can cause spinal injuries, fractures and head injuries. And they can also result in a higher homeowner’s premium.

Swimming Pools

Another source of higher insurance rates. Most drowning victims are children and more than half of those deaths take place in the child’s own home.

Fire Concerns

Location also matters when it comes to fire stations. Living too far away from the local fire hall or a fire hydrant could raise insurance rates. 

Poor Maintenance

Owners who don’t keep up with their home maintenance may see their rates raised or their homeowners insurance cancelled altogether. Leaky roofs, old hot water heaters, dripping pipes and poor water seals are just some of the items to watch out for.

Claim Frequency

Homeowners who make multiple claims may viewed as a higher risk and charged accordingly. Damage from a burst pipe, a tree that lands on a roof, or a kitchen fire on the same property will raise a red flag and cause insurers to take a closer look.

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