Are you worried about your Washington homeowners insurance increasing or being canceled? Many homeowners have seen their insurance premiums increase beyond their ability to afford it. Others have seen their insurance policies canceled without warning. Let’s take a look at what might cause your premiums to increase and what claims might result in a cancellation.
Types of Claims that Could Increase Your Premiums
Several different types of claims could cause your insurance premiums to increase, including fires, thefts or burglaries and dog bites, as well as filing multiple claims within a short timeframe.
Home Fires
No one wants to experience a house fire. Unfortunately, they do happen. A pet triggers a burner on the stove. An electric wire overheats or someone starts a fire too close to the house. In many cases, the home undergoes extensive damage that’s expensive to repair, and in some cases, the entire home has to be rebuilt. While your insurance is there to help you recover from the fire, they may also increase your rates due to the costs associated with repairing or rebuilding your home.
Thefts and Burglaries
Experiencing a theft or burglary can increase your home insurance premiums. This is because burglars tend to steal high-dollar items, like electronics, jewelry and gaming systems. These are items that criminals can quickly resell or pawn, and they’re often expensive to replace. Additionally, if there’s been a rash of burglaries in your neighborhood, your rates along with everyone else’s insurance premiums may be increased.
Dog Bites
If you have a dog or acquire a dog, it’s best to tell your insurance company. This is so that they can accurately assess your homeowners insurance rates to account for the possibility of your dog biting someone. If your dog actually does bite someone, your rates could increase further. Dog bites in Washington State typically cost between $30,000 and $300,000, and if your insurance company has to pay that amount, they’ll likely want to try and recoup it.
Things That Could Get Your Homeowners Insurance Canceled
While having your homeowners insurance premiums increased is bad, there are some things that could increase your risk of having your insurance in Washington canceled.
Filing Numerous Claims
If you’ve filed numerous claims within a short amount of time, your insurance company could choose to cancel your policy. This is because your risk for filing a claim has increased dramatically, and your insurance carrier wants to limit their risk of having to make high-dollar payouts.
Owning High-Risk Pets
If you adopt or purchase a high-risk pet, your insurance company may cancel your homeowners insurance or notify you that they’re not renewing your policy. Many insurance companies won’t offer homeowners policies for individuals who own various breeds of dogs, including chow chows, pit bulls, Akitas, Alaskan malamutes, German shepherds, great danes, rottweilers, Siberian huskies and wolf hybrids. If you plan on getting a dog, it’s best to ask your insurance carrier if there are any breeds of dogs that they will not insure. Additionally, many insurance companies consider pets that aren’t dogs or cats to be exotic. If you plan to purchase or adopt a rabbit, ferret or other type of pet that isn’t a dog or cat, you should discuss it with your insurance agent.
Changes in the Area Where You Live
Over time, the area where you live could change. It could experience an increase in severe storm activity, and the crime rate may have climbed. Your insurance carrier monitors these types of items and the number of claims they pay out each year for various locations. If your location has seen an increase in claims activity, your insurance carrier may cancel your insurance policy in order to limit their risk for future high-dollar claims.
Minimizing Your Risk of Experiencing an Increase or Cancellation of Your Washington Homeowners Insurance Premiums
You don’t have to sit by and wait for your insurance company to determine that you’re too much of a risk to keep insuring. You can be proactive. The first step is to only file claims that are absolutely necessary. Even zero-dollar claims, meaning claims where the insurance company doesn’t pay out, can count against you. Before you file a claim, determine how much the repair or replacement cost is, and calculate how much you might receive after your deductible. If it’s a low dollar amount that you could cover from your personal finances, it’s not worth filing a claim.
Secondly, if you’re living in an area that’s become known for severe storms, consider hardening your house. You can install hurricane brackets and impact-resistant roofing to make storm damage less likely.
Thirdly, if the crime rate in your area has increased, consider installing cameras and a security system. Having a security system with live cameras can help keep your insurance premiums affordable.
Spokane Homeowners Insurance in Washington from Boyd Insurance Brokerage Inc.
If you’re experiencing high homeowners insurance premiums in Washington State or have recently had your homeowners insurance canceled, we may be able to help. At Boyd Insurance Brokerage Inc., we offer affordable homeowners insurance policies. We can listen to your needs and locate home insurance policies that offer great coverage at prices that won’t deplete your finances.
To get a quote for an affordable home insurance policy in Washington, call us at 509-340-2693.
