Surprising Things that Increase Homeowners Insurance Cost

home front view

There are several less-known factors as well that can significantly increase homeowners insurance cost. While homeowner insurance is impacted by obvious factors like the size of the home, location, and condition of the building, there are other factors to take into consideration. Here are five surprising things you may not be aware are piling up your home insurance costs.

Market Price is not as Important as Replacement Cost

While for equity concerns or asset valuations, the market price of a house is the primary valuation. But when it comes to insurance packages, it is not how much the house would fetch from the market. Rather it is how much would it cost to rebuild it the same way as it is now. This may seem like the same thing but consider it this way; if you have an older home or one with low-end finishes for instance, the market price might not be that high. Especially if all other houses in your locality are constructed with up-to-date architecture. However, in case of a partial or total destruction of the house, the insurance company would rebuild it with the same paints and same wood structure etc. This might cost a lot more. In usual circumstances, the market value is higher than the replacement cost so make sure you get the appropriate quotes.

Previous Insurance Claims are Going to be a Problem

It does not matter if you never had to make a big claim for your homeowner insurance. Even if you had a small claim, as much as fixing some plumbing issue for instance, that will go towards your next homeowner insurance becoming more expensive. Frequent claims history is even more damaging. Insurance companies consider how many times the insurance holder would make them fulfill insurance claims. Try to avoid small claims as they will only end up making your home insurance more expensive. In the long run, fixing that kitchen sink tap yourself will most likely be cheaper than making a claim for the insurance company.

Your Beloved Furry Friend Might Cost You More Than You Know

It might come as a shocking factor but some breeds of dogs can increase homeowners insurance cost. If your dog is a breed that is aggressive and likely to cause damage around the house, the insurance companies are going to ask you to cover for that risk. So if you happen to have a “dangerous” breed, such as a Rottweiler or pit bull, your insurance will become more expensive. Some insurance companies even exclude owners of fierce breed dogs from their coverage altogether.

Home-based Businesses Also Adds to the Cost

If you are one of the more innovative entrepreneurs who has started a small company or even a local business from your home, your insurance company is going to deem that as a risk. Having inventory in your house or inviting more people to visit and stay inside the home is likely to depreciate the building and the surrounding area. Another factor to remember here is that while having a home based business may considerably increase the homeowner insurance costs, they do not cover the business liabilities. Some insurance companies may also require you to get separate business insurance to qualify for home insurance which will stack up your costs massively.

Those Fun Additions to your Yard Come at a Cost

Having a pool in your backyard or a trampoline in your front lawn will make you and your kids popular among friends, but it will likely make you unpopular among insurance companies. The same goes for purely aesthetic decorations such as an aluminum sculpture standing at the end of the driveway. All of these things are considered risky not just for the people living in the house and visiting guests, but also for the building and the house structure itself. If you want to avoid an increase to homeowners insurance cost and still really wish to have such amenities, then make them more secure. For example, construct a secure enclosure around the pool to avoid someone slipping and injuring themselves.


It is so important to insure your home to protect you from unexpected damages and emergencies. You now know more about what things may surprisingly affect your policy. Make sure you shop around to get the best price and the best policy to protect your home.