Why is My Homeowner's Insurance so High?

The joys of owning your own home are numerous but along with that ‘wonderful’ mortgage payment every month comes the inevitable but necessary homeowner’s insurance bill. If you are trying to keep that insurance bill as low as possible there are a few things to avoid.

·         A backyard pool is an awesome luxury to have with your home but it comes with a price tag. Along with all the maintenance and upkeep it will need, you will also need to add extra liability insurance to your homeowner’s policy. Most policies come with liability built in but if something bad should happen, you most likely will need more coverage especially if doctors and lawyers are involved.

·         Trampolines are in a similar category as pools. Even if you set the trampoline in the ground and have nets, accidents can happen. If you have not reported to your insurance company that you have a trampoline and somebody gets hurt on it, they may deny the claim.

·         Unfortunately, there are certain breeds of dogs that have been deemed more dangerous than others and may inflate your insurance bill if you choose to have one in your home. Some of these breeds include Pit Bulls, Akitas, Rottweilers and German Shepards. Injuries caused by dogs and the rising medical and settlement costs incurred by them make for a higher homeowner’s policy.

·         Building that adorable tree house may also jack up your rate. Once again, you’re liable if anyone gets hurt while playing on it.  Check with your insurance agent before drawing up the plans and picking out the perfect tree.

·         If you plan on renting out your home, make sure it is not rented for more than 3 months. Any longer than this and it will be considered a business and your home policy may not cover you.

Weigh the pros and cons and do your research when you are making decisions about your home. A little extra effort in the beginning will help protect you and your family’s best interests in the end.