6 Extras That Will Raise Your Home Insurance Rates
It’s natural to want to improve your home as your family matures. Making additions to the home is a wonderful thing, but be aware that as the landscape of your home changes, the home insurance coverage may change as well.
Here are several common extras that increase home insurance rates:
1. Detached structures
Garden sheds, pool houses, detached garages, and other structures may be on your property, but they likely aren’t automatically covered under your home insurance policy if you just added them. Make sure to inform your insurance company of any detached structures or outbuildings on your property.
2. Swimming pools
Pools definitely add sentimental value to a home as well as make for a lovely way to enjoy hot summer days. Unfortunately, they also offer people several more opportunities to grievously injure themselves than almost anything else you have. The added risk of slipping, falling, and drowning means you’ll have to pay higher home insurance rates for more liability coverage in your policy. It’s important that in addition to increasing your coverage you also take some precautionary measures to reduce risk.
3. Fun things for kids
Another term for fun things you add to your backyard for the kids is “attractive nuisance”. These include things like trampolines, treehouses, and zip lines. Such items may invite not only your kids, but their friends, to perform a dangerous stunt and get hurt. The increased risk of liability means higher payments to the insurer every month.
4. Expensive items
While you can take out a standard policy to cover your home’s contents, there are some things that will go beyond the limit of coverage on a single item. These high value items must be included in the coverage on an individual basis.
Also, as your life goes on you may simply acquire enough stuff to outgrow the amount of coverage you had when you first moved in. This is why it’s important to review your policy regularly and amend your policy when needed.
5. Troublesome or exotic pets
As terrible as it may sound, not everyone is going to love the fact you own two pit bulls or that massive boa constrictor. While animals can be domesticated and provide years of joyful friendship, they can sometimes be dangerous – or at the very least troublesome. Regardless of your pet’s actual history, some companies may consider it more dangerous than others and the risk can be reflected in the home insurance rates. This
applies to certain dog breeds as well as many exotic or “domesticated” wild animals.
6. Renovations
Most people don’t buy their perfect home; they build it. That can mean having it built to fit your vision or simply buying a home and then making the modifications that take it to the next level.
Most homeowners in Canada spend money on home renovations or improvements, whether it’s to add value before resale or to simply better enjoy their home. Either way, renovations often lead to increased home insurance rates. During renovation, a home’s safety may be compromised, meaning more risk. Renovations that impact the home’s value can also drive premiums higher as the policy’s coverage should match the value of the home and contents.
Don’t take all this as a reason not to tell your insurance company about your new pool or to not bother with a home insurance policy at all. You could end up in even bigger trouble if you leave these extras out of the question. Just be aware of the cost Knowing how your decisions will impact your finances is essential. Your home is important. If you were willing to buy it, you should be willing to find an appropriate policy for it.