High-risk home insurance customers are common. In fact, you may even be one and not even know it. It is not uncommon for insurance providers to raise red flags for these customers.
Are you the type who dreads the coming of monthly insurance payment? Do always complain about its cost with your other half? Have you ever been denied coverage? Possibly, the reason for this is that you are a risky insurance customer without even knowing about it.
When insuring a home, the insurance actually has a lot to do with you than it will with the actual property you are insuring. The premiums you get from home insurance are often evaluated the risks posed by the house and its owners. Home insurance for homes along the Tornado Alley will tend to cost more due to the risk they have of tornados and strong winds. Now, in regards to your case, if your insurance provider evaluates you as risky, then your premium will definitely spike up.
The lists below are common red flags for home insurance providers. If you belong to this list, it is probably not the house you are insuring, but more like – you!
Low Credit Scorer
Customers with low credit scores will without doubt be risky insurance customers. Your credit score is often a determining factor on the amount of premiums you need to pay. More often than not, having a low credit score will mean that you have to pay higher premiums.
The truth is that the reason for this is simple: having a poor credit score will always signify risk. Fortunately, you can actually improve your score in time by simply paying your monthly bills on time. Also, make sure to stay out on other types of credit.
The Dog Lover
Dogs would not normally come as a threat for you, especially home insurance-wise. Insurance providers on the other hand think otherwise. A lot of insurance providers will not provide coverage when certain breeds of dogs are present because they pose as liabilities, I would suggest that you get a candian professional liability insurance instead since it covers the stuffs that a normal home insurance won’t cover. Large and powerful dog breeds like akitas, Dobermans, Pit bulls, and Rottweilers are just some of the breeds that may elevate your risk on the insurer’s standpoint.
For other dog breeds, it may depend from the insurer’s standpoint. If your pet has any biting or violent history, either you face higher premiums or that liability coverage will be denied for your pet. While all dogs are not the same, even for same breeds, insurers on the other hand do not take these risks. In 2013, the average payout claims for dog bites was around $28,000 as per Insurance Information Institute.
The Pool Owner
Purchasing a home with a pool may seem like big bonus on your part. However, this is not the case for your insurer as swimming pools are always considered as liabilities. From 2010 to 2012, there is an average of 5,100 pool-related injuries for children below 15 that were treated in hospitals. During the same period, there were 390 pool-related deaths. In other words, swimming pools are great liabilities.
If you are the type who delays having things fixed around your home, then you may be costing yourself serious money. If you do not have things fixed around your home, you may be forced to pay higher premiums.
The Unlucky Homeowner
Even if you are a responsible homeowner who is simply unlucky, when you have a history of claims based on unforeseeable occurrences, your history will cause your insurer to think you are risky home insurance customers. By making your property safe, such as the removal of dead branches that can cause damage to your property, you can avoid making any more claims that makes you a risky customer.
High home insurance premiums and getting denied coverage or insurance can be infuriating. Then again, there are ways to avoid these and lower your insurance premium. Doing some comparison shopping may help you find the lowest premium possible. Different providers have different rules and factors in evaluating risk. If it does not go well with one, try another and maybe they will provide you with coverage.