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5 Surprising Homeowners Insurance Facts

home insurance

Although necessary, Homeowners insurance can be rough on your budget, but there are smart ways to get high-quality insurance and save money too. Below you will find 5 surprising facts about what affects homeowner insurance quotes.

1. Credit Is An Important Rating Factor: Your credit history plays a role in things such as the interest rate you pay for credit accounts, and whether you can rent an apartment, but it also affects your insurance premiums. A past study from study found that if you have fair or median credit, you pay 29% more on average nationwide for home insurance than someone with exceptional credit. But if you have poor credit, your premium will almost double!

2. Making A Claim Affects Your Rate: No one wants to ever have to use their homeowners insurance, but it’s there just in case. In the unfortunate event that you have to turn to your homeowners insurance, not only is it a hassle to repair your home, but making a claim can make your rates shoot up! Depending on the type of claim you make and what area you live in, your annual premium could increase about 9% on average nationwide from just one claim.

3. A Previous Owner’s Claim Can Affect Your Rate: When it comes to claims history on a home, even any prior owners’ insurance claims made over the previous 7 years can affect the homeowner insurance rate that you have to pay. The reasoning for this is, an insurer sees a home/property with multiple claims as a higher risk for having more claims in the future, and may charge you more because of that.

4. Some Dog Breeds Are Blacklisted: Surprisingly, your loving pet can possibly cause problems with your home insurance. Since dog bites make up one third of claims and on average are $30,000 per claim, insurers may be particular about the breeds living in your home. Some are blacklisted all together and others you will have to pay an inflated rate. A few of the most commonly blacklisted breeds include Boxers, Great Danes, German Shepherds, Pit Bulls, Siberian huskies and Rottweilers.

5. Not Everything Is Covered: It is important to know that a lot of policies state in order for something to be covered by home insurance, it must be sudden and accidental such as natural disasters. Examples of things that may not be covered include mold or sewer backups. Also, some personal items have coverage caps. Jewelry, artwork, computer equipment, silverware or firearms may only be covered from $5,000 to $10,000. You should raise the coverage of any expensive belongings to make sure your policy pays out enough in the event that they are damaged.

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