Insurance Red Flags That Could Impact Your Home Insurance Quote

When applying for homeowners insurance, several factors can influence your ability to secure an affordable and comprehensive policy. Understanding these potential red flags and addressing them in advance can improve your chances of getting a favorable home owner's insurance quote.

History of Insurance Claims
If you've filed multiple insurance claims in the past, insurers may view your property as high risk, which can drive up your premiums. Before seeking a new home owner's insurance policy, try to resolve any outstanding claims and take steps to mitigate future risks.

4-Point Inspection Requirement
If your home is older, your insurance company may require a 4-point inspection before issuing a policy. This inspection focuses on four key areas: the roof, electrical system, plumbing, and HVAC. The purpose is to assess potential risks and ensure these systems are in good condition. If deficiencies are found, you may need to make repairs before obtaining coverage.

Aging Electrical and Plumbing Systems
Old wiring and outdated plumbing can pose significant fire or water damage risks. Many insurers charge higher rates for homes with older systems. If your home has aging infrastructure, consider having it inspected and updated before applying for coverage.

Deferred Home Maintenance
Neglected maintenance—such as a deteriorating roof, clogged gutters, or outdated HVAC systems—can result in higher insurance costs or even policy denial. Insurance companies often ask about the last updates to critical home components, so staying proactive with maintenance is key.

Insufficient Security Measures
Homes lacking security features like deadbolts, burglar alarms, and motion-activated lighting may be considered more vulnerable to break-ins. Adding security enhancements can not only improve safety but also help lower insurance rates.

Unreported Renovations or Upgrades
If you’ve recently remodeled—whether adding square footage, updating electrical systems, or installing high-end fixtures—your home’s value and replacement cost may have increased. Failing to notify your insurer of these changes could affect your coverage or premium rates.

Smoking Indoors
Homes with a history of indoor smoking carry a higher fire risk, which can lead to increased premiums or difficulty securing coverage. If you smoke indoors, be upfront with your insurer and consider smoking outside to reduce potential fire hazards.

Certain Pet Breeds
Some insurance companies have restrictions on dog breeds they consider aggressive, such as Rottweilers or Pit Bulls. If you own a dog, be prepared to disclose its breed and any history of incidents when applying for coverage.

Risky Outdoor Features
Pools, trampolines, and hot tubs can be fun additions but also pose liability risks, leading to higher premiums. If your home has these features, safety measures such as fencing, covers, or liability waivers may help mitigate potential insurance concerns.

Location Risks
Your home’s location significantly impacts insurance costs. Properties that are far from fire stations, hydrants, or emergency services are often considered higher risk. If possible, implementing fire prevention measures, such as installing sprinkler systems, may help lower premiums.

It is Important to note - Flood Insurance is Separate
Many homeowners are surprised to learn that standard home insurance policies do not cover flood damage. If you live in a flood-prone area, you will need to purchase a separate flood insurance policy through the National Flood Insurance Program (NFIP) or a private insurer. Be sure to assess your flood risk and consider additional coverage if necessary.

By identifying and addressing these red flags before applying for homeowners insurance, you can improve your chances of securing a home owner's policy that offers the best coverage at a reasonable rate.