When you're shopping for homeowner's insurance, you'll find that the premiums vary widely depending on the coverage limits as well as the carrier that you're working with. However, while it's important to know that your coverage selections and carrier will affect your premiums, it's equally important to understand that there are factors that can contribute to those costs. For example, when it comes to your liability coverage, it's important to know what can affect your premiums. Here's a look at some of the things that can contribute to your liability premiums on your homeowner's policy.
Pets In The Household
One of the things that you might not think of when you think about homeowner's insurance is your pets. In fact, the pets that your family owns can directly affect your homeowner's insurance costs because of the risks associated with certain animals.
Every homeowner's insurance company has a list of what is classified as "aggressive breed" or high-risk dogs. If your family owns any dogs of these breeds, you'll find that your insurance premiums are higher because of the liability risk.
In addition, exotic pets, such as monkeys, snakes, scorpions, and such will also lead to higher insurance premiums. Remember that these types of pets are high-risk for injuries to others, which can increase your liability risks.
Swimming Pools And Hot Tubs
Any kind of water fixtures on your property will also put you at risk of higher liability premiums. You'll have to ensure that your pool or hot tub is secured with a fence and a gate to prevent unauthorized access, which will help to reduce the effect that the pool has on your premiums. However, that doesn't completely eliminate the increase. Have your insurance company inspect the pool or hot tub when you buy the policy. They can often provide you with recommendations to help secure the fixture and reduce your liability risk.
Home-Based Business Ownership
Running a business out of your home is another serious concern for insurance companies. You'll find that your liability insurance coverage may cost you more if you run a home-based business. You can often minimize this by investing in a separate liability policy for your home-based business, but you should talk with your insurance provider about this first.
The more you understand the things that can affect your homeowner's insurance liability premiums, the easier it is to control your homeowner's insurance costs. Talk with your local home insurance agent today for more help and information.