What Causes Homeowners Insurance to Go Up?

Your puppy may cause your insurance rates to rise.

Owning a home is expensive and an increase in your homeowners insurance premium can signal that you need to review your policy to see which factors caused the rate increase or it is time to shop around for a new insurance company. If you experienced an increase in your homeowners insurance premium, it is best to talk to your agent to determine the cause.

Removal of Discounts

Some insurance companies offer discounts to clients who have multiple lines of insurance, such as homeowners and auto insurance. If you receive a discount for having multiple types of policies, but cancel a policy, you may no longer receive a discount on your homeowners policy.

Your Pet

Owning a dog breed your insurance company thinks is dangerous or more likely to bite a guest can increase your homeowners insurance policy. Dog breeds that can increase your policy include chow chows, akitas, German shepherds, pit bulls, Siberian huskies and wolf hybrids.

Claims

When accidents happen at your home, your insurance premium could rise if you file a claim. Certain claims can make your homeowners insurance company believe you are at greater risk for a repeat incident. Such claims can include those related to thefts, natural disasters, vandalism, water damage and injuries your guests receive. An increase in claims in your area also can cause an increase in premium, even if you never filed a claim.

Risks at the Home

The age, condition and contents of your home affect your homeowners insurance premium. The lack of security features, owning a pool or trampoline, moss on a roof, and not renovating an old home can cause an increase to your premium rates. In such events, your insurance agent can give you tips about how to make your home safer and less expensive to insure.

Proximity to Emergency Services

The distance from your home to the fire department can affect your homeowners insurance premium. If, for example, the fire department relocates to a building that is farther away from your home, you may experience a rate increase.

Credit Scores

A good credit score can help save money on homeowners insurance rates. Because the insurance world is all about risks and statistics, a bad credit score can make you statistically more likely to default on a premium payment. Like a credit card company may increase your interest rate if you have poor credit, an insurance company may charge you a higher premium of you have poor credit.

References

• The Mortgage Professor's Website; Questions About Homeowners Insurance; Jack M. Guttentag; April 2011
• InsureMe.com: Some Things to Consider to Help You Save Money on Homeowners Insurance
• Bankrate.com; Eleven Dogs That Could Raise Your Insurance Costs; Kay Bell; September 2003
• Insurance Providers: How Much Will My Insurance Go Up Every Year?