We know there are still people out there who are still wondering what home insurance is and are planning to get one. However, before you get one, Axis Capital with a group of insurance and reinsurance companies all over the world provides you this check list to review and consider about the mutual relationship of your home and insurance.
First off, the home of your dreams may be a nightmare to insure if it's built in a disaster-prone area, is above a certain age or has a checkered claims history. It doesn't necessarily mean you can't find homeowners insurance anywhere, but you may end up paying a steep price for it.
1. Homes in disaster-prone areas
We have thousands of disasters every year. From tsunamis in Sumatra affecting lives to almost all islands in Indonesia including Jakarta in 2004 to earthquakes in Japan losing millions of dollars and hundreds of lives in 2011 to typhoon Katrina which devastated not only America but other countries as well, insurance companies have the reason to insure their own business. Take precautions, listen to warnings and make preparations.
2. Older homes
You love the charm of your 1920s bungalow or Victorian-era home, but the age and style make them harder to insure. Insurers also are likely to shy away from insuring your home if the electrical system and plumbing haven't been updated or the roof hasn't been replaced.
3. Vacation homes
Your vacation home may be your own personal retreat, but because it's unoccupied much of the year; it can be a challenge to insure. Installing a burglar or fire alarms will help you decrease your risks and may give you a little leverage in your insurance.
4. Homes with a trampoline or pool
Having a swimming pool or trampoline might make for good summertime fun, but your homeowner’s insurance company may see them as an "attractive nuisance" that can tempt children to come into your yard when you're not home.
Putting a locked fence around your pool and having a net around your trampoline could help reduce risks.
5. Homes with certain pets
You may find your insurer will set limits on the amount it will pay for a dog-bite liability claim, with you having to pay the rest out of pocket, or even deny you coverage if you own certain breeds, such as a pit bull. In some cases you can only get coverage if you take your dog to obedience classes or make sure he's restrained.