Whether you are out on the market for a new home or you are simply thinking about getting an outdoor activity for your children, you will want to make sure that you consider the features that could cause you to pay extra in your homeowners insurance premiums. Here are three desirable home features that could cause you to go into shock when you see the insurance price tag for them:
1. Swimming Pool
Swimming pools are one of the largest liabilities for insurance companies. This is due to the high risk of injuries and deaths in the water. For example, if a kid in the neighborhood accidentally fell into your pool and drowned or suffered a severe injury, you could be held accountable and may be responsible for their medical expenses. If the parents of that child decide to sue you, then you are looking at significant legal costs.
According to the Insurance Information Institute, most standard policies for homeowners insurance will include liability coverage of at least $100,000. This can help you in the event that you are sued, but the III recommends increasing the liability coverage to a minimum of $300,000 (and up to around $500,000) if you own a swimming pool. Some insurance companies, before they will provide insurance to you, may require that you build a fence around the pool, built with a self-locking mechanism to keep children and other individuals away from the area.
Owning a trampoline is another high-risk feature that can cause your monthly premiums to skyrocket. Sure, your kids may enjoy bouncing around on it, but your insurance company won't be as thrilled. According to a 2014 article in USA Today, there are roughly one million visits to the Emergency Room (ER) every single year due to trampoline-related injuries and accidents. Out of those one million visits, almost 300,000 were due to broken bones and fractures. Some states and carriers even exclude trampoline-related claims from insurance policies altogether, which means you would be responsible for any medical expenses, legal costs, etc. if someone is injured and decides to pursue a legal claim against you.
3. Vintage, Historic Charm
Some people purchase old Victorian homes for their vintage and historic charm. They choose to live in these while they are upgrading them. Even if they home looks like it has been well-reserved, the chances are that there are some prime features inside the home, including the electrical and plumbing, which definitely need to be upgraded. If these features are 10 years old or more, then you could see an increase in premiums.
These three things should not keep you from buying the home of your dreams or even having an in-ground swimming pool installed. However, you do need to make sure that you are aware that these features may carry higher insurance premiums and a higher risk. Talk to your insurance agent if you have any concerns. For more information, contact a company like Mid-Alliance Insurance Associates LLC.