Whether you are a first-time homebuyer, buying your dream vacation home or just looking to switch insurance carriers – securing a homeowner’s insurance policy that will give you peace of mind is crucial! 

There are several red flags that could prevent you from getting a favorable insurance quote. Understanding these red flags and how to avoid them can help you secure a comprehensive and affordable insurance policy.

  1. Prior Insurance Claims – A history of prior insurance claims can increase the cost of your insurance policy. It is important to resolve any previous insurance claims before applying for a new policy.
  2. Location Risks – The location of your home can play a significant role in the cost of your insurance policy. Homes located in areas prone to natural disasters, such as earthquakes, hurricanes, and floods, may have higher insurance premiums. Or homes that are not near a hydrant, fire department or water source will increase the cost of your insurance. 
  3. Old Wiring and Plumbing – Old and outdated wiring and plumbing systems can pose a fire hazard and may lead to higher insurance premiums. It is important to have these systems inspected and updated if necessary, before applying for a new policy.
  4. Lack of Up-to-Date Home Maintenance – Neglecting regular home maintenance, such as roof and gutter repairs, can lead to higher insurance premiums and even policy rejection.  Also note that most insurance carriers will ask when your roof, electrical and heating systems were last updated. 
  5. Unusual or Customized Home Features – Unusual or customized home features, such as a cool treehouse, can be challenging for insurance companies to underwrite and can lead to higher insurance premiums or policy rejection.
  6. Poor Home Security Measures – Homes that lack basic security measures, such as burglar alarms, deadbolts, and window locks, can be seen as high-risk by insurance companies and may lead to higher insurance premiums or policy rejection.
  7. Recent Remodeling or Renovations – Recent remodeling or renovations, such as adding a new room or upgrading the electrical system, can affect the value of your home and may impact the cost of your insurance policy. It is important to inform your insurance company of any recent updates to your home.
  8. Smoking in the Home – Homes where there is a history of smoking can pose a fire risk and may result in higher insurance premiums or policy rejection. If you are a smoker, it is important to disclose this information to your insurance company.
  9. Pets – Certain breeds of dogs, such as pit bulls and Rottweilers, can be seen as high-risk by insurance companies and may lead to higher insurance premiums or policy rejection. If you have a pet, it is important to inform your insurance agent of the breed and any past incidents involving the pet.
  10. Pools, Trampolines, and Other Hazardous Features – Features such as pools, trampolines, and hot tubs can increase the risk of accidents and may result in higher insurance premiums or policy rejection. 

It is important to understand the insurance red flags that could prevent you from getting a competitive insurance quote. Addressing these red flags before applying for a new policy can help you secure a comprehensive and affordable insurance policy that protects your new home.

If you’re in Illinois and looking for a reliable insurance agent who understands the intricacies of property coverage, contact Tom Klonowski Power Risk Management: tmk@powerrisk.net or 815-922-4754.