Wednesday, 17 February 2010

• Red Flags for Home Insurance

  
  

  A couple of my good friends have taken the leap into adulthood and gotten married. So they're looking into buying houses right now, and dealing with issues I, frankly, don't even think about.

  One of these issues is the question of home insurance. Just like with other types of insurance, there are many factors that may result in higher rates for you or a plain old refusal to cover.

  For those of you in the same boat as my friends, this article from CNN.com lists some of the factors to look out for because they can have a very negative impact on your ability to procure home insurance: 
  

  • Old Wiring: Old wiring , like a knob-and-tube system (dating back to the 1880s-1930s) generally aren't grounded, and therefore can't be used with modern 3-prong outlets. And old fuse-boxes can be overridden to not trip  when they're supposed to, causing a huge fire risk companies don't want to take on.

  • Past Claims or Dropped Policies: Apparently carriers use a shared database, and can see when you've made past claims. So having made a claim on your insurance in the past can work against you, even with a different company. Same thing for a dropped policy.

  • More than 2 Unrelated People in the House: Insurance companies see multiple non-family members living together and see the risks of a boarding house and therefore increased liability because of the potential for parties, unlocked doors, stoves left on, etc. Basically, they imagine the problems you see at any campus house full of students.
    

  • Dangerous Dogs: Because dog bite claims account for about 1/3 of home insurance claims, insurance companies are hesitant about covering people that have dogs with a history of biting or are even just a breed that is considered dangerous like pitbulls or rottweilers.

  • Run-Down Exteriors: Signs that you don't maintain your property, like peeling paint, a lack of gutters, moss-covered roofs and junked cars, will make  insurance companies want to turn around and go the other way.
    

  Have you ever had problems getting home insurance? What other factors do you think affect the ability to get coverage?
  
  Check out the original article here: http://articles.moneycentral.msn.com/Insurance/InsureYourHome/5-things-that-kill-home-insurance.aspx
  

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