Your homeowners insurance premiums are based on a wide range of factors. Several of them are specific to you and your property. When your circumstances change, your current insurer might raise your rates. Shopping around can help you keep your coverage affordable.
When Your Insurance Premiums Might Go Up
Your policy’s dwelling coverage will pay to rebuild your home if it gets destroyed. If you renovate your house or build an addition, that will increase the cost to rebuild. Your homeowners insurance premiums are likely to go up, perhaps by a lot.
If you have a dog and it bites someone, that can result in hefty medical bills and an expensive insurance claim. Depending on your insurance company’s rules and the breed you select, you might discover that getting a new dog will cause your rates to soar.
Adding an “attractive nuisance” to your property can also make your premiums go up.
An attractive nuisance is a feature that’s appealing to children and dangerous. For example, a pool or a trampoline can be enticing to kids in your neighborhood. If a child gets hurt, your insurance company can be required to pay a large claim. To compensate for the increased risk, the insurer is likely to raise your rates.
Why You Should Get Quotes From Different Insurers
Although homeowners insurance companies consider many of the same factors when setting premiums, they weigh them differently and use different methods to calculate rates for individual policyholders. If you install a pool or get a dog and you stick with your current insurer, your premiums might skyrocket, but a different company might not charge you as much.
If you request homeowners insurance rate quotes from several companies, you might find that you’re eligible for discounts that can save you money. Bundling two or more policies through the same insurer is one of the easiest ways to keep your premiums affordable.
You might also qualify for a discount based on your employer or an organization that you belong to. Eligibility for those types of discounts varies from one company to another. Your current insurer might not offer you a discount because of your employer or professional affiliation, but a different company might offer you a substantial reduction in premiums.
Make a Habit of Shopping Around
You’ll have to compare quotes to find out which homeowners insurance company can give you the coverage you need at the best rates. It’s a good idea to explore your options once a year, even if your personal circumstances haven’t changed. Insurance companies periodically change the ways they calculate premiums, and switching insurers might save you money without forcing you to sacrifice coverage or raise your deductible.
