Common mistakes that could cause your home insurance to increase

Several common mistakes can cause your home insurance premiums to increase. Being aware of these can help you avoid unnecessary hikes in your insurance costs. Here are some key mistakes to watch out for:

1. Filing Too Many Claims: Frequently filing claims, especially for minor damages, can lead to higher premiums. It’s often better to pay out-of-pocket for small repairs.

2. Not Updating Your Policy: Failing to update your insurance policy after major renovations or additions can leave you underinsured and may result in higher premiums when the insurer reassesses your home’s value.

3. Neglecting Home Maintenance: Poor home maintenance can lead to problems like water damage, mold, or structural issues. Insurers may increase premiums if they consider your home a higher risk due to neglect.

4. Ignoring Security Improvements: Not installing or updating security measures such as smoke detectors, burglar alarms, and deadbolt locks can lead to higher premiums. Insurers often offer discounts for these safety features.

5. Owning High-Risk Pets: Certain dog breeds and exotic pets are considered high-risk by insurers. Owning such pets can increase your liability risk and lead to higher premiums.

6. Not Bundling Policies: Failing to bundle your home insurance with other policies like auto insurance can cause you to miss out on multi-policy discounts that can lower your premiums.

7. Having a Poor Credit Score: In many states, insurers use credit scores to determine premiums. A low credit score can lead to higher insurance costs.

8. Not Shopping Around: Sticking with the same insurer without comparing rates periodically can result in paying higher premiums than necessary. Regularly shopping around can help you find better deals.

9. Making Structural Changes Without Notifying Your Insurer: Building a pool, adding a trampoline, or making other structural changes without informing your insurer can increase your risk profile, leading to higher premiums.

10. Underestimating Your Home’s Value: Insuring your home for less than its replacement cost can lead to increased premiums when the insurer reassesses your home’s value to align with current construction costs.

11. Failing to Address Policy Lapses: Allowing your insurance policy to lapse, even temporarily, can lead to higher premiums when you reinstate it, as insurers may view you as a higher risk.

12. Having an Unoccupied Home: Leaving your home unoccupied for extended periods without notifying your insurer can result in higher premiums due to increased risks of vandalism or damage.

13. Operating a Home-Based Business: Running a business from your home without proper coverage can lead to higher premiums if your insurer discovers the business activities.

14. Choosing a Low Deductible: Opting for a low deductible means the insurer will cover more minor claims, which can result in higher premiums. Consider a higher deductible to lower your premium costs.

15. Not Reviewing Policy Annually: Failing to review and update your policy annually can result in outdated coverage and potentially higher premiums due to unnoticed changes in risk factors.

16. Living in a High-Crime Area: If crime rates increase in your neighborhood, your premiums might go up. While this isn’t always within your control, taking security measures can help mitigate the increase.

17. Ignoring Local Building Codes: Failing to comply with local building codes can result in higher premiums if your home is considered non-compliant.

18. Not Taking Advantage of Discounts: Many insurers offer discounts for various reasons, such as being claim-free, having certain safety features, or being a senior. Not taking advantage of these can result in higher premiums.

19. Failing to Pay Attention to Coverage Limits: Not adjusting your coverage limits as needed can lead to either underinsurance or overinsurance, both of which can affect your premiums.

20. Overlooking Flood or Earthquake Insurance: If you’re in a high-risk area for floods or earthquakes, failing to get appropriate coverage can result in higher premiums for other aspects of your policy.

By avoiding these common mistakes, you can help keep your home insurance premiums as low as possible while ensuring you have the coverage you need.