Your home insurance costs are not set in stone. Your rate can go up and down depending on several factors.
Knowing and anticipating the events, purchases, and life changes that can move the needle on your home insurance rate is a savvy homeowner money move that can help you stay on top of monthly housing expenses.
Here are 13 surprising things that might cause your rate to go up or down.
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1. Adding a trampoline
A trampoline may sound like a lot of fun — and it is. But it’s also a liability.
Do you know anyone who has broken their arm while attempting a new trick on a trampoline? Because the insurance company definitely does. And that means the insurer will hike up your rate if you have a trampoline.
Own a car? Here's 7 warning signs you're paying too much for car insurance. 2. Installing a pool
Who doesn’t want a pool in the summer? But a pool is also a danger, especially if children are around.
A pool is known as an “attractive nuisance,” which means it is a potentially dangerous temptation for children and others. And that danger will increase your homeowners insurance rate, even if you install a gate around the pool.
3. Owning a high-risk dog
While your dog may be a sweetheart, certain breeds are known to be more high-risk when it comes to attacks.
If you have a German shepherd, Rottweiler, or pit bull, your home insurance rate may increase due to the liability risk.
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Living near a fire station will actually lower your rate.
That is because, in theory, the fire department can get to your home faster if there is a fire, which reduces your risk.
5. The condition of your roof
A new roof might result in lower premiums. Insurance companies offer discounts if you have a newer roof because they assume it will protect your home in the event of a storm.
Meanwhile, having a roof that is more than 10 years old could result in higher costs.
6. Where your home is located
Homes in areas prone to natural disasters or where crime rates are high will cost more to insure because the insurance companies see you as more of a risk for a claim.
In particular, insurers are pulling out of states that see high amounts of damage due to natural disasters.
Can you retire early? Take this quiz and find out. 7. The type of stove you own
The type of stove you own could raise your rate, especially if it’s a wood-burning stove that increases the risk of a fire in your home.
8. Your marital status
Some states allow insurers to offer lower rates to married couples because statistics show that such couples are less likely to file a claim.
However, other states prohibit insurers from offering this type of discount.
9. Your history of filing claims
Insurance exists to provide a safety net when something bad happens. However, if you file too many claims, you will begin to look like a high-risk customer to insurance companies.
And that means they might hike your rate.
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10. Your employment history
There is good news for those who are retired: Your home insurance rate may go down.
Insurance companies assume that if you're retired, then you're home more often. That means you have more time to take care of your home and you are there to intervene if something happens.
11. Your credit history
If your credit is good, your home insurance rate will be lower. If it’s bad, the rate may go up. This is because of data that indicates that homeowners with lower credit scores tend to file more claims.
12. Renovations that improve your home
This is a double-edged sword: Renovations that improve the condition of your home can make your home less of a risk factor for some types of damage.
However, some renovations also make your home more expensive to replace, which could increase your rate.
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13. The size of your deductible
If you have a higher deductible, the insurance company will have to pay less in case of a claim.
That means the insurer will likely reward you with lower premiums. Remember that if you choose a higher deductible, you will get a smaller reimbursement from your insurer if you file a claim.
Bottom line
If you want to eliminate some money stress , it’s important to understand the impact a life change or other event can have on your home insurance costs.
You can also look at other numbers that could affect your monthly housing costs, including the direction of property taxes, whether your mortgage rate is fixed or adjustable, and how your utility usage changes over time.
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