5 Items That Can Increase Home Insurance Costs
While home insurance is a must have, there are certain items and scenarios homeowners should be aware of before purchasing insurance.
Here are five common rate increases that most people do not consider:
1. A House of Fun
Our homes are our sanctuaries and sometimes adults, and children, need to be entertained. Swimming pools and trampolines lead to great summertime fun, but they can also pose a dangerous threat. Drowning is the leading cause of unintentional death among children in the United States.
Do you think that your dog Fido is going to protect your house from intruders? He may, but there is a higher risk that your dog will bite someone else.
All of the items we consider “fun” on our property also include risks in using them (lets not forget about tree houses). For example, if someone is injured using your new swimming pool in the Lake of the Ozarks. Don’t forget that most of these items also will increase renters insurance if you rent a home.
2. A Home Business
Do you own a home business in Missouri? Chances are that your home insurance will rise. Not only do you have lots of equipment like computers and printers to protect, but you also may be liable if someone becomes injured in your office. Some companies will cover your business equipment under your homeowners policy, while insurance companies may require separate policies.
A McGrath Insurance Group professional will be able to find the right policy for your home.
3. Luxury Items
Many insurance companies cover standard jewelry and other luxury items, but not the big-ticket items on a standard policy. Additional coverage may be needed to insure diamond engagement rings, art collections and expansive antique collections. The more expensive items you have, the more likely you are going to need to schedule those items on your home insurance policy.
4. Where You Live
There are many factors about the location of your house that can raise the cost of home insurance. For example, the crime rate around your home could affect the insurance premium you pay on your home insurance policy. High crime rates make homeowners more at risk for break-ins and theft.
Local possibility for natural disasters also may play a role in your policy rate. Are tornadoes or hurricanes likely? Most homes around Lake of the Ozarks sit close to water where flood insurance may be necessary.
Also, the property value of your home and others around you plays a role. The cost to replace your home in the event of a disaster is a determining factor in a premium.
Finally, having a fire department nearby can lower the cost of insurance. Having police and fire departments nearby means there is less likely a possibility of a total home loss.
5. Not Bundling
If you are not taking advantage of insurance companies who offer discounts for having multiple policies, you are probably missing out on some savings. Don’t forget to try to include umbrella and life insurance policies with the same insurance company for additional savings.
McGrath Insurance Group has been providing insurance options to clients since 1945 and can provide you with many personal insurance and business insurance quotes.
