Pools, Trampolines and Pets: What Additions Could Raise Your Rates

As a homeowner, you’re likely aware of the importance of purchasing a home insurance policy. However, your insurance needs are dynamic and may change over time. Making changes to your property or household can be particularly impactful, as you might need to adjust your policy and enhance your coverage. At Universal Insurance Services, we help homeowners in Chicago, IL maintain policies that match their situations.

Why Do Home Additions Affect My Rates?

Making changes to your home can have multifaceted impacts on your insurance-related circumstances and subsequent coverage needs. Certain features or enhancements may heighten your perceived risk levels or increase your home’s value, meaning previous policy limits may no longer be sufficient.

How Might Certain Changes Impact Premiums?

Understanding how and why various home renovations, additions and other changes affect your premiums may help you plan and budget effectively. Consider the following examples:

• Attractive nuisances—Adding an attractive nuisance, such as a swimming pool, trampoline or playground equipment, to your property can make your home more enjoyable, but it may also increase your coverage needs and rates. Physical features, such as pools, might require greater coverage limits. Additionally, these features typically heighten your perceived liability risks, as insurers must account for the potential that you’ll be held responsible for someone else’s medical bills if they were injured while using them.

• Renovations—Whether you’re building a new wing onto your home, updating a bathroom or otherwise making alterations, such enhancements will likely increase your rates. Your policy limits should typically scale with your home’s estimated rebuild cost. As such, if you add to your dwelling’s footprint or otherwise make tangible improvements, you’ll likely need more financial assistance for repairs or rebuilding. With higher coverage limits come more expensive premiums.

• Family additions—Whether it’s a child or a pet, adding a new member to your family can have a significant impact on your home insurance rates. Most home insurance policies include personal liability coverage, which can help with third-party losses for which you or other insureds, such as spouses, children and pets, are responsible. Some insurers might consider children to increase your liability risk levels. Similarly, pets, including certain dog breeds, might be considered risky and require carriers to charge higher rates.

Learn More

Contact Universal Insurance Services today to learn more about how changes in your home might affect your coverage needs and costs.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.