If you're a homeowner with insurance, you already know the process of finding the right amount of coverage for your property and home. Over the years you might have noticed your rates can rise with new additions. Insurance companies base their rates on a few risk factors in your home and property. For instance, your rate might be higher if you live in a region that was recently hit by a hurricane. However, there are some reasons rates can go up that are not as well-known or easy to determine. If you've noticed your homeowners insurance policy has recently gone up, there may be a few things going on.
Your kids might love having a trampoline to play with in the yard, but there's a good chance it's going to cost you. There are several safety issues with trampolines that cause thousands of injuries every year. You might see the trampoline as a great way to get your kids outside, but in the eyes of your insurance company, it's a serious liability. Before you set one up and let children loose, you need to carefully consider if it is worth the risk and expense.
While you may think Fido is a sweet little thing, the truth is that he poses a risk for your insurance company, especially if he is a certain breed. While you might have trained your dog well and been without an incident, there's still a chance your dog could bite someone and cause injury. In many cases, your homeowners insurance policy will provide you with some liability coverage if anyone sues you for getting injured on your property. According to the Centers for Disease Control and Prevention, there are about 4.5 million dog bites in the U.S. every year. Because there are so many, insurance companies may not want to cover certain dog breeds that are generally considered more aggressive. If you get a new dog, it could affect how much you pay for homeowners insurance.
A new pool
If you've recently completed construction for a new backyard pool, your homeowners insurance rate is about to skyrocket. Pools can be fun for the entire family, but they also pose a serious risk for insurance companies. The CDC lists unintentional drowning as the fifth leading cause of injury deaths in the U.S. While you most likely want to use your pool to go for a dip in the summer, consider how much more it will cost you to insure. Either way, you should make sure your pool adheres to standard safety regulations and local laws, some of which mandate an exterior fence.
There are a few moments in life that are truly celebratory, and getting engaged or married is definitely at the top of the list. However, if you've recently purchased a new engagement ring or piece of expensive jewelry, your homeowners insurance prices might go up. That's because most policies cover your belongings inside the home, including your most valuable possessions. Whenever you acquire something new, you need to let your insurance company know so it will be covered.