Imagine walking in one day to find your home insurance premium has skyrocketed. You haven’t filed a recent claim, nor has your neighborhood suddenly become a crime hotspot. So what’s the deal? The truth is, several seemingly innocent factors in and around your home could be quietly driving up your insurance rates.
Keeping a lid on your home insurance cost is more than just shopping around for the best deal. It also involves understanding the factors that insurance companies consider when determining your premium. Let’s take a closer look at seven hidden culprits that might be costing you more on your home insurance bill.
1. Your Home’s Age
Older homes are often filled with charm and character, which is why many people gravitate towards them. However, insurance companies see them as a risk. Older homes tend to have outdated electrical systems, plumbing, and heating systems, increasing the likelihood of an accident or damage happening.
Why does this matter now? Because as your home ages, the cost to repair or replace these older systems also increases, leading to higher insurance rates. Regular maintenance and updates can help mitigate these costs, but they won’t eliminate them completely.
2. Your Swimming Pool
Swimming pools are a great source of fun and relaxation, especially during the hot summer months. But many homeowners are unaware that having a pool can significantly increase their home insurance premium. This is because pools increase the likelihood of someone getting injured on your property, which would result in a liability claim.
As more people are spending time at home due to the pandemic, the risk of accidents happening in and around the pool has increased. This makes having a pool a more significant factor in calculating your insurance premium now than ever before.
3. Your Dog Breed
They say dogs are man’s best friend, but did you know that your furry friend could be inflating your insurance premium? Some insurance companies view certain breeds as a higher risk for liability claims, especially if they have a reputation for being aggressive.
With people spending more time at home with their pets due to the current health crisis, incidents of dog bites have reportedly increased. This makes the breed of your dog an even more important factor when it comes to determining your insurance premium.
4. Your Home Business
Running a business from your home can be convenient and cost-effective. However, it can also affect your insurance premium. This is because a home business increases the likelihood of property damage and liability claims.
The shift to remote work during the pandemic has led more people to start home businesses, thus increasing the risk of insurance claims. This in turn has made running a home business a more significant factor in determining your home insurance rate.
5. Your Proximity to a Fire Station
Living close to a fire station can give you peace of mind knowing that help is nearby in case of an emergency. However, it can also mean higher insurance premiums. This is because insurers consider the likelihood of your home suffering extensive fire damage.
With the increase in home fires during the pandemic due to people spending more time at home, living close to a fire station has become a more important factor in determining your insurance premium.
6. Your Neighborhood Crime Rate
Living in a neighborhood with a high crime rate can be stressful and unsafe. It can also lead to higher insurance premiums. This is because homes in these areas are at a higher risk of theft and vandalism, which increases the likelihood of you filing a claim.
As the economic impact of the pandemic continues to unfold, crime rates in some areas have reportedly increased. This makes your neighborhood’s crime rate a more significant factor in calculating your insurance premium.
7. Your Credit Score
Although it might not seem logical, your credit score can affect your home insurance rate. The reason is simple: insurance companies believe that people who manage their credit well are less likely to file claims.
With the pandemic causing financial stress for many households, maintaining a good credit score has become more important than ever. Not only does it help you secure loans at favorable rates, but it can also help keep your insurance premium down.
As a mom of three busy boys, I know how chaotic life can get — but I’ve learned that it’s possible to create a beautiful, cozy home even with kids running around. That’s why I started Cultivated Comfort — to share practical tips, simple systems, and a little encouragement for parents like me who want to make their home feel warm, inviting, and effortlessly stylish. Whether it’s managing toy chaos, streamlining everyday routines, or finding little moments of calm, I’m here to help you simplify your space and create a sense of comfort.
But home is just part of the story. I’m also passionate about seeing the world and creating beautiful meals to share with the people I love. Through Cultivated Comfort, I share my journey of balancing motherhood with building a home that feels rich and peaceful — and finding joy in exploring new places and flavors along the way.
