How Pursuit Of The American Dream Can Raise Your Homeowners Insurance Rates

20 November 2014 by Elijah Steward

Do you dream of owning a fierce Pit Bull, living by the beach or installing an Olympic-sized swimming pool? These are all valid pursuits of the American dream, but they can have a serious impact on your homeowners insurance. Continue reading to learn what else can increase your costs.

Owning Pets

Before you buy that pet dog for your son's next birthday, think about how it can affect your homeowners insurance. According to the Massachusetts Society for the Prevention of Cruelty to Animals (MSPCA), many insurers have reservations about insuring homes with specific dog breeds such as Pit Bulls, Labradors and Rottweilers. Some insurers even refuse to sell policies to homeowners with such dog breeds.

This is possibly because the 4.7 million dog bites that occur every year cause the insurance companies about $250 million. It's not all about dogs; even exotic pets such as tarantulas and snakes can be pretty problematic.

Installing a Trampoline

Jumping up and down a trampoline may be good for your child's exercise, but it isn't good for your insurance premiums. According to the Journal of Pediatric Orthopaedics, victims of trampoline accidents spent over one billion dollars for the decade ending 2010. Insurance companies don't take kindly to such figures and adjust their rates accordingly.

Living on the Beach

There are many people who dream of owning beach houses, but what they may not know is that such houses attract high insurance premiums. This is because of the high frequency of natural disasters on lands adjacent to oceans. Although some beaches are safer than others, coastal areas are generally perceived as hurricane or tornado prone.

Swimming Pools

If you can't afford a beach house, and instead want to make do with a gigantic swimming pool in your backyard, you should know that you aren't out of the woods yet. The United States Consumer Product Safety Commission reports drowning as the leading cause of deaths and injuries for children aged one to four. Of these accidents, residential cases account for 54% and 85% of the injuries and fatalities respectively.

What is more, a swimming pool is regarded as "attractive nuances," which means it can attract children to your property, and you will be held liable if they are injured. This is why your insurer is likely to refuse a claim if you put up a swimming pool without informing them first.

These facts aren't meant to "scare" you away from living your life to the fullest. Rather, they are meant to caution you to be responsible in your home. For example, you should secure your pool with a suitable fence, install a pool cover and forgo a diving board to reduce potential injuries. Of course, you should always inform your insurer, like Prepared Insurance Company, before making a significant change in your home.

Share

Search