The Rising Costs of Homeowner’s Insurance

August 07, 2014

vGiven the drastic and severe weather that the majority of the country has seen over the past several years, most homeowners have likely felt the sting of rising insurance rates. Flood legislation has changed the flood zones, wildfires are springing up in increasingly drought-ridden areas and tornadoes are happening in more populated communities.

However, severe weather is not the only thing that can cause your homeowner’s insurance rates to rise. According to the new article on the Equifax Finance Blog, “

Five Reasons Your Homeowner’s Insurance Rate May Rise,” there are several other factors to keep in mind:

  • Multiple claims in a short period of time could cause your insurance company to not renew your policy, leading to higher premiums on a new policy. Company guidelines are becoming more stringent, so be sure to find out if your insurance provider has a specific non-renewal policy.
  • Purchasing additional land can raise your rates if the land is not considered vacant by your insurance company. Be sure to contact your agent to determine whether you will have to pay an additional premium or if it’s covered under your policy.
  • Making additions, renovations or changes to your home can affect your insurance premiums. For example, swimming pools typically require an additional premium, as can adding additional square footage or making significant upgrades during a home renovation.
  • Working from home has become a popular option for all types of businesses, but it can also increase or negate your homeowner’s insurance, particularly if you have clients coming into your home. Be sure to discuss with your agent how running a business from your home can impact your insurance policy.

There are a variety of different scenarios that can affect your homeowner’s insurance, so it’s imperative that you discuss any changes with your insurance agent. Although it can seem unnecessary to pay higher insurance premiums because of a small change, it’s better to know that you’re safe and won’t risk hurting your finances if something happens on your property.

For more information on personal finance, taxes or insurance, be sure to visit the Equifax Finance Blog.


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