Five Surprising Things That Might Be Driving The Cost Of Your Homeowner’s Insurance Through The Roof

When most people purchase a home, they consider the cost of the home, the interest and even the tax rate. Most, though, simply think of homeowner’s insurance as an additional bit of red tape — as a necessary nuisance. You may not know, though, that some strange things may be affecting your insurance rate.

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Your Dog

Your dog is part of your family. How in the world could a family member affect your insurance rate? If you have a dog that’s considered “high-risk,” such as a Pit Bull or a German Shepherd, you may pay more for homeowner’s or renter’s insurance. Shop around. Not all insurance companies penalize, and some may cover you if you agree to training classes. Others might have you sing a waiver that says you aren’t covered in case of dog bites. Since no dog is 100% predictable, lacking dog bite coverage can be frightening.

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Marital Status

Wait, what? Yes, it’s true. Insurance companies can discriminate against unmarried people. It turns out that married people file fewer claims and they’re generally considered more mature.

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Your Credit Score

California is one of only three states where it’s illegal for insurance companies to penalize people with bad credit. The assumption is that people who don’t pay their bills on time are more likely to file a claim. Their scoring system is a bit different from major lenders and credit card companies, but it’s similar. Insurance companies look at how you pay your bills more than how much you owe.

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A Home Based Business

If you run a business out of your home, you may need to take out additional insurance. That’s not to say that a Mommy blogger with a computer isn’t covered, but if you have more than $5,000 in goods or equipment at home, you can double that coverage for about $20 a year. That also includes liability insurance, should you be sued.

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Your Proximity to a Fire Station

While it might be an annoyance to hear the blaring sirens, living near a fire station could save you money on your homeowner’s insurance. On the flip side, living far from a fire station could cost you.