Do you open up your home insurance bill every month and cringe at how much money you have to pay? The truth is a lot of different factors can make your home insurance premiums cost a fortune. Before you can lower your premiums, you have to determine what's making them go up in the first place. Here are five reasons you might pay too much for home insurance:
You Have a Low Credit Score
You already know that a low credit score will make it more difficult to get approved for a loan. However, you might not be aware that a poor credit history can also increase your home insurance premiums. According to a report by Insurancequotes.com, individuals with less than stellar credit scores pay 91 percent more for home insurance than those with a good credit history. If you have a low credit score, your insurance companies may see you as a more risky customer and charge you more money. The good news is that it is always possible to increase your credit score by paying your bills on time and paying more than the minimum amount on your credit cards.
You Have a Trampoline or Swimming Pool
Having a trampoline or swimming pool in your backyard might not seem like a bad idea, especially if you have little kids. Your children will be entertained for hours and get the exercise they need. However, trampolines and swimming pools are considered liabilities by insurance companies. If another child in the neighborhood comes over and gets injured on the trampoline or in the swimming pool, your insurance company will have to pay for the damages. If you want to keep your insurance premiums low, it is best to keep these two items out of your backyard.
You Own an Aggressive Dog Breed
Your pooch might be the sweetest and friendliest dog, but if he's considered an aggressive dog breed, your insurance company might be wary of the situation. They might fear the dog will bite guests who come to your home. However, you don't necessarily have to get rid of your dog to receive lower home insurance rates. If you sign your dog up for obedience school and prove to your insurance company that he successfully completed his training, they may feel more comfortable lowering your premiums.
You Haven't Made the Necessary Updates to Your Home
Whether you live in a newer or older home, you need to keep up with the maintenance. If you have a leaky roof, old electrical wiring or dripping pipes, for example, your insurance company will think you are more likely to file claims in the future. Making the necessary updates to your home can keep your home insurance premiums under control.
You Live in a High Crime Area
If you live in a dangerous neighborhood, your house is more likely to get burglarized, so your insurance company may charge you higher home insurance premiums. It's not very practical to just move to a different neighborhood, but you can make some other changes. For example you could install a security alarm system in your home. This system is an initial investment, but it will deter burglars from breaking into your home. Your insurance company will appreciate the fact that you are improving your home's security and may offer you cheaper insurance rates.
Whether your high home insurance premiums are due to owning a trampoline or having a low credit score, you can make some changes and lower your insurance rates. Make an appointment with your insurance agent and ask him or her about the best ways to get cheaper insurance. If you have any other questions, click here for info on home insurance.