Most homeowners know the importance of property insurance and how it insures your home against mild to severe damage. If you’re a homeowner yourself, then you probably know how location, home renovations, and local crime can affect your rates, but did you know that your hot tub, your dog’s breed, and even your own home-business can increase your rate? The odd list goes on, but reasonably so – anything that increases the risk of housing damage or on-property injuries have the potential to jack up your insurance rates.
7 unexpected things that raise home coverage costs
1. Dog Breeds
Man’s best friend, the dog, may protect your home but does not do much when it comes to insuring your home. Dogs can even affect whether or not you’re even considered eligible to insure your home at all. If your dog is a known aggressive breed, there’s a considerable risk of injury on your premises. In fact, dog bites and attacks account for more than one-third of all annual homeowner claims. So, it’s no surprise that owning a specific dog breed can blow up your rate.
2. Owning a Home-Business
If you’re a home-business owner who actually uses all of or a part of your house as a service location, your home and those visiting are at increased risk of damage and injury. The more foot traffic your abode has, the more room there is for accidents on site, especially if your home includes additional equipment for the business. The liability varies on the type of business and its physical presence in your home. So, make sure to do your research before starting a new home business or moving with one.
3. Owning a Hot Tub or Pool
At first, it may seem surprising that owning a personal pool or hot tub could greatly increase coverage costs, but when you consider that not only can those living in your home accidentally face injury or death, but those visiting your home can potentially face these things as well, it makes more sense. Aside from personal injury, the home faces risks to water and plumbing damage from any unexpected damages to the pool or hot tub.
4. Owning a Personal Spa
Personal spas that include spa equipment and portable bodies of water such as the aforementioned pool also increase the risk of damage to your goods and injury. Saunas and electric tanning beds run the same risk to visitors as well. Anyone injured on the premises for these reasons has the right to sue, which is why prices can be raised significantly with spa additions.
5. Having a Wood Frame Home or Not Having One
Not all homes are built equally. Properties can be made of a mix of combustible and noncombustible materials, ranging from a house of metal to a wooden log house. As far as framework goes, houses with wooden frames generally have an increased premium because of their susceptibility to catching fire. However, in a place where earthquakes are prevalent, wood would be the preferred framing material for the house. So, it’s important to consider your location in regards the materials your house is made of. Because while a wooden frame in Atlanta, Georgia may spike rates, the case would differ in a place such as Los Angeles, California that is prone to earthquakes. The risk differs.
6. Natural Disasters
It’s hard to think that you would be held accountable for the natural disasters that take place in your state, but companies do reward those who don’t live in hurricane, earthquake, or blizzard attracting areas. So those of you planning on living in stormy states like Florida should check to see how much of a rate increase there is because these natural disaster locations really do affect your rate.
7. Trampoline (and anything that attracts children)
This may be the most surprising item on the list, but many do not know that adding a trampoline to your backyard can significantly increase your premium. Actually, adding anything that may entice a child to come to your residence can increase premiums because you are still liable for any injuries sustained on your property – even if the guests were not told to use these things. It may not sound fair, but the risk is still realistic, and children are still the most prone to these types of injuries.
When it comes to home insurance charges, the potential threats to your home can seem never ending when you have to cover them all. Moving around, making additions to your home, and even the amount of guests you’re likely to attract can affect your rate. This list shows you that even considering buying a trampoline for the backyard can be a difficult decision if you don’t want increased premiums. It seems that for much of this list, certain luxuries come at a cost because of their unavoidable risk.