Reasons Why Your Homeowners Insurance Rates Go Up
Sometimes, the increase in your homeowners insurance premiums results from something you did, and other times it’s because of what you didn’t do. Here are some things that can trigger an increase in your rate.
You filed home insurance claims. With your first claim, especially if it’s small, you might not see much of an increase. But a second and third claim within five years will surely be noticeable. Any more than that, and they may cancel your policy.
Your insurance score decreases. This is not the same as your credit score, but in many states, your credit rating factors into it. Most insurers use this multi-factor score to assess your risk level. Additional factors in your score include how many claims you’ve had and the safety features of your house.
You get a dog. Fifi might be a great addition to your family, but she might also cause an increase in your insurance. Getting the Canine Good Citizen certificate from the American Kennel Club might net you a discount. Having a fence and keeping them leashed may also help.
You add an attractive nuisance to your property. Yes, that pool and swing set that you added in an attempt to reduce the kids’ screen time will result in higher rates. Hot tubs, trampolines, tree houses, and fountains also fall within this category. The in-ground pool may add to your home’s value, but it’s not without increased danger.
You’re not keeping up with repairs as your home ages. Houses need TLC to keep them standing strong for decades. You need to do routine maintenance and minor plumbing and fixture repairs and clean out the gutters. Those are relatively easy and inexpensive. It’s the significant things like not replacing an electrical or HVAC system that’s older than you that add higher risk and thus higher premiums.