Home Insurance Pitfalls
April 14, 2008
Have you ever been denied home insurance coverage? You might be surprised to learn that many homeowners are finding it harder to get home insurance policies in some areas of the country. So what must happen in order to be denied home insurance?
There are several reasons why a policy may be denied but the bottom line is that home insurance companies are leery of insuring a person who may actually use the insurance at some point in time.
That may sound counter-intuitive but the insurance companies are looking out for their bottom line as well. More payouts on claims means less profit at the end of the year.
While this news may be discouraging, there are some things homeowners can do to better their chances for acceptance as well as lower their premiums in the process.
Any type of potential hazard that is on your land can cost you in either being denied or in higher rates. Some examples of what a potential hazard may be include things like open wells that someone might fall into, swimming pools that are not fenced properly; certain sporting items such as trampolines or dirt bike trails that are on your property can cause insurance problems.
Even something as innocent as a water slide or diving board can add to your rates.
In addition to hazards, there are also unsafe conditions that can add to your rates or cause you to be denied outright. Some of these you have little control over, such as the crime rate in the neighborhood.
Other things you do have some control over. Leaky roofs that might lead to water damage is just one example. An unsafe front or back porch will cause problems as well as stairs that are in disrepair.