What you don’t know about homeowner’s insurance could sneak up and bite you at the most inopportune moment. For example, did you know that your home’s distance from the nearest fire station can affect your insurance rates? Here are a few other sometimes surprising (sometimes not) factors that you might not be aware of.
Your Credit Rating
This is something of a controversial issue. What does your credit rating have to do with your qualification to be insured against fires and floods? Well, it goes a little beyond that. Insurance companies view your credit score as a barometer of your stability, and use it to determine if you’re a risky prospect to insure.
Having an aquarium of goldfish won’t have a negative effect on your homeowner’s insurance rates, but toss in a few piranha and all bets are off. Actually, the “dangerous breed” rule typically applies to dogs, specifically, any damage that they might cause against humans. Having a pit bull, Rottweiler, or Doberman in the family could raise your rates. Although you may be able to work with the insurance company and create a clause in the contract that specifies any damages caused by Fido won’t be covered in the policy.
As fun as it is to have one in the backyard, having a pool also comes with certain risks that will cause your insurance company to hike your rates. Although pain of heightened premiums are likely no match against the joys of the daily backyard summer dip, it never hurts to talk to your insurance rep before breaking ground.