Having trouble finding a company to write your Home insurance policy?
Homeowners Insurance: Problematic Homes
For Dog Owners:
For dog owners, having liability coverage that would cover bodily injury from a dog-bite is necessary. Because dog-related injuries are a serious problem for insurance companies, most companies have restrictions on the types or breeds of dogs that they are willing to insure.
Below is a list of dog breeds that are commonly denied coverage by insurance companies:
Akita
Bull Terrier
Chow Chow
Doberman
German Shepard
Great Dane
Husky
Malamute
Mastiff
Pit Bull
Rottweiler
Wolf-Dog Hybrid
If you own one of these breeds and are wondering if your liability coverage extends to your dog, talk to your agent or get a quote to find out.
Coastal Locations:
The geographical location of your home is one of the most important factors used to determine your home insurance premium. If you own a home near the coast, chances are you are paying a higher rate due to an increased chance of a natural disaster occurring, such as a hurricane or flood. Recently, many insurance companies are choosing not to offer homeowners insurance for new customers who live along the shore and some companies aren’t even renewing current customers who live in these areas.
Because homes located on the coast are considered to be “high risk” by insurance companies, the federal government established a program to give coastal homeowners better access to insurance, called the Fair Access to Insurance Requirements plan, or the FAIR plan. FAIR plan insurance policies generally cost more than a policy from a private insurance company and offer less adequate coverage, but unfortunately for coastal homeowners, it may be their only option for insurance.
If you live near the coast, find out exactly how many miles your home is located from the shoreline, as this would determine your eligibility for either a private insurer or the FAIR plan.
Swimming Pools & Trampolines:
If you have a swimming pool or a trampoline in your yard, you could be taking on a much higher liability risk than you think. Although these recreational devices can be a lot of fun, they also can attract children throughout the neighborhood to come onto your property to play, which could lead to severe injury or even death.
If you own a swimming pool, check the local laws in your area to see if there are any specific legal requirements regarding swimming pool construction and safety. For example, you may be required by law to build a fence around your pool and keep it locked when not in use. Even if not required by law, insurance companies may require that these safety measures be in place, otherwise it may be grounds for them to cancel your policy.
Like swimming pools, trampolines also open you up to much more liability exposure, and many insurers will deny you coverage if you own a trampoline. Even with a fence in place, if a child in your neighborhood climbs over your fence to use your trampoline and is injured on your property, you could be held negligent or responsible, even though the child was technically trespassing.
If you do own either a pool or a trampoline, you should notify your insurance agent immediately to make sure that you have adequate coverage. If you are planning on purchasing either a pool or a trampoline and would like to know how it will affect your home insurance rate, call us for a free quote.
Historical Homes:
If you are the owner of an historical home, finding insurance coverage can be frustrating. Some insurance companies hesitate to insure historical homes because of their antique and sometimes unsafe heating, plumbing, and electrical wiring. Some carriers will even refuse to insure a home if it was built before a certain year or time period.
Another problem with obtaining coverage for your historic home is that the insurance company may only insure it for the market value of the home and not the replacement cost. The market value of a home is the amount that the home is worth on the market today, while the replacement cost of the home is the amount of money it would cost to rebuild the home using the same quality construction materials but at today’s cost.
Historic homes, especially ones built during the Victorian area, are significant because they feature hand-carved wood molding, hand-made windows and doors, and hard to find replacement parts such as hinges and doorknobs. The cost to replace those original building materials today would be a lot greater than the market value of the home.
If you are the owner of an historical home, find out if your policy covers your home on a replacement cost basis or on a market value basis, as these two completely different types of coverage should never be confused. If your home has outdated electrical wiring such as porcelain knob and tube wiring, you may want to consider updating to a more modern electrical system, or at least have your current system inspected for damages and potential problems.
