Top Factors that Can Make Home Insurance Policies High-Risk

Insurance companies assess homeowners and their properties to determine if they have a high risk of filing claims. While being deemed a high-risk homeowner is cause for concern, you likely still have options for securing financial protection for common catastrophes. Knowing if you’re a higher risk according to insurance companies also helps you plan for paying a potentially higher premium. In some cases, you might be able to minimize or eliminate a risk to get the best policy premium possible. Taking a look at these factors can help you plan to purchase insurance for your home.

Owning Property in a High-Risk Area

Certain California communities are known for being high-risk due to the heightened possibility of those areas experiencing natural disasters. Homeowners might still be able to get insurance coverage even if their properties exist within wildfire zones through the FAIR Plan, which covers smoke, fire, and lightning damage. Your property might also be considered high-risk if you live in an area with high crime rates.

Leaving Your Home Vacant for Long Periods

Rental properties are naturally deemed higher risks by insurance companies because of the inability to gauge multiple people’s likelihood of contributing to an incident. However, you’ll also want to know your insurance company might list your property as high-risk if you leave it vacant for weeks or months at a time. While having a California winter house is convenient, the truth is hazards in a vacant home might go unnoticed until it’s too late. Vacant houses are also at increased risk for criminal activity and vandalism.

Living with an Aggressive Dog Breed

Home insurance policies typically contain personal injury coverage. This is why insurance companies want to know if you have an aggressive dog breed living on the property. While you might know your pet is well trained and more of a snuggler than a biter, insurance companies will still need to plan for a potential dog bite injury claim.

Possessing an Attractive Nuisance

Swimming pools and trampolines are popular backyard amenities. Unfortunately, they also increase the risk of needing to file insurance claims. Although you might teach your children to follow the rules, it’s possible another person might hop a fence and get hurt in or on your backyard’s attractions. Swimming pools also pose a risk for water-related property damage. While these might raise your policy’s premium, many homeowners find their enjoyment is worth paying a little more for coverage.

Having an Extensive History of Prior Claims

Knowing you have financial protection during an unexpected event helps you reduce your stress. But insurance companies do take notice if a property has more claims than normal. If your home has a history of multiple prior claims, it’s worth taking a look at what happened. Putting on a new roof and making other improvements may lower your property’s risks.

For reliable, affordable home insurance, San Diego homeowners know they can trust Altra Insurance Services. We also provide renters, commercial, motorcycle, and car insurance. Chula Vista residents can receive a free quote by calling one of our friendly agents today.