6 Factors That Increase Home Insurance Costs

Home insurance is a necessary evil for most homeowners. It’s an important safety net that can protect you from potentially devastating financial losses in the event of a fire, theft, or other covered disasters. 

But it can also be expensive, and the process of finding and securing the right policy can be frustrating and time-consuming.

Below are six factors, from living in a high-risk area all the way to owning exotic animals as pets, that can increase your home insurance costs. We’ll also provide some tips on how to avoid these problems and keep your premiums as low as possible.

What is homeowners insurance, and why do you need it?

When you are deciding what to look for in a family home, homeowners insurance will certainly come up.

Homeowners insurance is a type of property insurance covering damage to or loss of a home. It also provides liability coverage in the event someone is injured on your property.

Homeowners insurance is required in most states, and it’s a good idea to have it even if you don’t live in a high-risk area. 

The cost of homeowners insurance can vary depending on a number of factors, including the age and value of your home, the type of coverage you choose, and even your zip code.

There are several reasons why you need homeowners insurance:

1. It can help protect you from financial losses in the event of a covered disaster.
2. It can help protect you from liability lawsuits in the event someone is injured on your property.
3. It can help you get back on your feet quickly after a disaster by providing temporary housing expenses and other assistance.

If you’re looking for homeowners insurance, be sure to shop around and compare policies. Ask your friends and family for recommendations, and always read the terms and conditions carefully before signing up.

The Six Factors That Can Increase Your Home Insurance Costs

There are several factors that can increase your home insurance costs. Some of these factors are unavoidable, such as the age and value of your home. But others are within your control, and it’s important to be aware of them so you can avoid them if possible.

Here are six factors that can increase your home insurance costs.

#1 – Living in a High-Risk Area

If you live in a high-risk area, you’ll likely pay more for homeowners insurance. This is because there is a greater risk of damage or loss occurring at your home. 

There are a number of factors that can make an area high-risk, including its location, weather conditions, and crime rate. 

#2 – Owning an Exotic Animal as a Pet (or Even Just a Dog)

Owning an exotic animal as a pet can increase your homeowner’s insurance costs. This is because these animals are considered to be high-risk, and they may pose a liability risk if they injure someone.

If you own an exotic animal as a pet, be sure to disclose this to your insurance agent. You may need to purchase additional coverage to protect yourself from liability risks.

Many insurers also charge higher premiums for homeowners who own dogs, especially breeds known to be aggressive or dangerous.

If you own a dog, be sure to disclose this information to your insurer. You may be able to get a discount if you take steps to reduce the risk of your dog biting someone, such as taking obedience training classes or puppy-proofing your home.

#3 – Having a Swimming Pool

Swimming pools are a major liability risk, and insurers often charge higher premiums for homes with pools.

This is because there is a greater risk of someone being injured at your home if you have a pool.

If you have a pool, be sure to take steps to reduce the risk of accidents particularly among children, such as installing a fence around the pool and posting safety signs. You should also consider getting liability insurance for your pool.

#4 – Making Modifications to Your Home

If you make alterations to your home, such as adding a deck or a second story, you may have to pay more for homeowners insurance. This is because these types of modifications increase the risk of damage or loss occurring at your home.

If you’re planning to make any changes to your home, be sure to check with your insurer first to see if it will impact your premiums.

#5 – Filing Too Many Claims

If you file too many claims, your insurer may raise your premiums or even cancel your policy altogether. This is because filing too many claims is considered a sign of high risk.

If you need to file a claim, be sure to do so only for damages covered by your policy. And be sure to shop around for a new policy if your current insurer raises your rates.

#6 – Not Shopping Around for Homeowners Insurance

The best way to save money on homeowners insurance is to shop around and compare policies from different insurers. Rates can vary drastically from one company to another, so it’s important to compare rates before you buy coverage.

The easiest way to compare homeowners insurance rates is by using an online comparison tool. 

This will allow you to get quotes from multiple insurers at once so you can easily compare rates. It can also be a good idea to ask friends and family members so you can compare your findings to what they pay for their insurance.

When shopping for homeowners insurance, be sure to consider all of the factors impacting your premiums. By doing this, you’ll be sure to find the best policy for your needs and budget.

How to Get the Best Deal on Your Homeowners Insurance

Homeowners insurance is vital protection for one of your most important assets. There are a number of factors that can impact the cost of your homeowner’s insurance, but by being aware of these, you can keep your premiums down while still getting the coverage you need.

Do some research on homeowners insurance policies and providers to make sure you’re getting the best possible deal.

Luke Williams writes and researches for the insurance comparison site, ExpertInsuranceReviews.com. His passions include insurance and helping others find affordable home insurance.