Becoming an Adult

6 Factors That Can Increase Your Home Insurance Rates

28 December 2016

Robin King

Home insurance protects one of your biggest investments, but it does not always come cheap. In fact, some home insurance policies can be downright expensive. If you are spending a lot of money on your home insurance premiums every month, you probably feel pretty frustrated. However, it is possible to reduce your rates by making a few changes. Here are six factors that can increase your home insurance rates:

Trampolines

Do you have a trampoline in your backyard? If so, you probably think it is a great way to keep your children entertained for hours. While that may be true, owning a trampoline can increase your home insurance premiums. That is because kids can fall off a trampoline and get hurt. If one of your child's friends got injured while jumping on your trampoline, your insurance company may be held liable for the damages. That is why many insurance companies will charge homeowners with trampolines higher insurance rates. If your home insurance bills are getting too high, you may want to get rid of your trampoline.

Certain Dog Breeds

If you own an aggressive dog breed, such as a pit bull or Rottweiler, you may get charged more money for home insurance. These dog breeds have a reputation for being aggressive and attacking people, so insurance companies want to be careful. Your dog may be well trained and as nice as can be, but your insurance company may still be wary and increase your insurance premiums.

Old Structural or Design Elements

The structure and design of your home may also have an effect on your insurance premiums. For example, if the roofing, wiring or plumbing in your house is old and falling apart, your insurance company may consider you a bigger insurance risk and charge you more for your premiums. That is why it's important to make the necessary repairs to your home. Replacing your roof or updating your plumbing system might be an initial big investment, but it can save you more money in insurance premiums in the long run.

Home Business

A home business gives you the freedom to set your own hours and work in your pajamas. It also can spike your home insurance premiums. You need several items to operate a home business, like computers, printers and desk chairs. If your home got burglarized or caught fire, you could have a potential big reimbursement from your insurance provider. It may be a wise idea to purchase business coverage for your home business.

Poor Credit Score

Your credit history can have quite an impact on your life. A poor credit score does not just reduce your chances of getting approved for loans; it can also increase your insurance premiums. Many insurance companies believe the people with low credit scores are more likely to make home insurance claims. If you make an effort to improve your credit score by paying yoru bills on time, your insurance company may lower your rates.

Bad Neighborhood

If you live in a neighborhood with frequent crimes, your insurance company may charge you more money for home insurance. They may worry that your house is at risk of getting broken into and robbed. One thing you can do is install a security alarm system in your house to deter burglaries from robbing it. If your insurance company sees that you are making an effort to prevent theft, they may lower your rates.

You do not have to pay through the roof for home insurance. If you follow these helpful tips, you can lower your insurance rates and have more money in the bank. For more information, contact a business such as East Tennessee Mutual Insurance.

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