What Factors Influence Home Insurance Rates?

There are many factors that go into your insurance company deciding what your premium will be, and while some may be obvious, like the level of coverage, location, and quality of the house, there are some hidden factors that go into your insurance premium.  These are some of those lesser-known factors.

Fire Protection

How far away your home is from a fire hydrant and the quality of your local fire department is something that can be factored in. The closer you are to a fire hydrant and the better your local fire department is, may help get you a better rate on your insurance.

Claims in Your Area

If your neighborhood is regularly making claims for burglaries, tornadoes, or something else, your insurance may be a little higher, since there is a bit of risk that comes with insuring your home.

Attractive Nuisances

Attractive Nuisances are things like pools, trampolines, playground equipment, treehouses, and large sculptures in the yard. There can be more, in a wider range, these are just some of the most common nuisances. They are fun and attractive, but they can also bring risks to your property, especially if they make children or teens want to sneak onto your property and play. If someone sneaks onto your property to play in your pool and they get injured, you might be considered liable, even though they were trespassing and using your pool without your knowledge or permission.

Wood-Burning Stoves

A wood-burning stove can be considered a fire hazard, so they can increase your insurance premium. One thing that may help your premium is showing your insurance company proof that the stove was installed by a licensed contractor and that it is up to code.

Dog Breed

Part of your liability insurance is intended to protect you is you get sued by someone who gets bitten by your dog. Some insurance companies will refuse to cover you if your dog is considered to be an aggressive breed. Coverage may also be determined on a case-by-case basis, depending on the dog’s history and if it is seen as vicious. Sometimes coverage will depend upon if you take your dog to classes to train it, or if you regularly muzzle or kennel the dog when people are over. If an insurance company will cover an “aggressive” breed but will slightly increase your premium.

Marital Status

If you are married you may get a slightly lower insurance rate than someone who is single. This is because when there is a married couple in the home, they may be considered less risky because there is a higher chance someone is home and can alert the authorities of a fire, burglary, or other incidents.

They will also factor in your occupation and how often you are home. If you are someone who works 12-hour days, you may be paying more than someone who works eight hour days, or someone who works entirely from home.