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Examples Of Homes That Are Expensive Or Difficult To Insure

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Buying home insurance is one of the best ways of shielding yourself from costly expenditures in case your home is damaged. Unfortunately, you will have a hard time finding coverage at a reasonable price if home insurance companies consider your home a high risk. Here are some examples that insurance companies may give your home such a classification:

It Is an Older Home

Here are some of the reasons older homes are difficult to insure:

  • They have outdated plumbing and electrical systems that may cause water and electrical fire respectively
  • The accumulated wear and tear their materials have suffered over the years increase their risk of serious damage in case of an accident
  • Many of them were constructed using old building codes that may be considered inherently dangerous today

It Has an Attractive Nuisance

  • An attractive nuisance is anything that kids find attractive but can cause them serious injuries. Common examples include swimming pools, trampolines, and wells. Home insurance companies consider such homes risky because of the inherent risk of those attractive nuisances. Apart from that, even trespassers can claim damages from homeowners if they are injured by attractive nuisances.

It Is a Vacation Home

A vacation home is expensive to insure because it is unoccupied most of the year, and this increases its risk. An unoccupied home is a high risk because:

  • Any small disaster, such as a water leak, can cause a serious damage because nobody will be around to deal with it
  • Such homes are thief magnets because thieves know their owners are away
  • Such homes may not be attended to or maintained properly like occupied homes

The insurance company has to up its premiums to cover those increased risks.

It Is Located In a Disaster Prone Area

Even if the actual structure of your home is safe and strong, home insurance companies are likely to consider the property risky if it is located in a disaster-prone area. This is because, in case of a disaster, even the best homes suffer and necessitate insurance claims. Examples include homes in flood-prone areas or those located near forests that usually suffer wildfires.

If your home is expensive to insure, then it's a good idea to sit down with an insurance agent and discuss the risks before buying coverage. The insurance agent may have some suggestions on what to do to improve lower the risks and make your insurance more affordable.