5 amenities that cause home insurance rates to rise

By HUB SmartCoverage Team on August 9th, 2017

Home insurance rates seem to increase every couple of years, yet the level of coverage seems to go the other way. Go figure. It’s no wonder most Canadians, including top financial columnist Rob Carrick, cringe whenever it’s time to make a payment.


The amount you pay each month is determined by a number of factors, including the value of your home and the location in which it sits. Another factor is amenities.


Here are five amenities that will make your premium to go up.


Swimming pool

Owning a pool will raise your premium. So will a hot tub. Not only are both luxury amenities that can increase the replacement value of the home, but activities in both pools and hot tubs can result in drowning, which poses a huge liability risk to insurers.


A finished basement

Sure, your finished basement looks gorgeous with a bar and an extra bathroom. But, wait. Did you know that a finished basement will drive up your premiums? That’s because of monetary damage that will result is a pipe bursts or sewage backs up. In other words, a finished basement is more likely to lead to a claim than an unfinished basement, and will also be for a higher sum.


Expensive items

The contents of your home are covered under your home insurance policy, but only up to a certain value. Certain, particularly valuable items may require their own insurance, which will force you to tack on some extra coverage. Possible examples include jewelry, artwork and watches.


Wood stove or fire place

This feature may feel quaint and be practical for your house, but to the insurance companies it looks like a hazard. It’s not difficult to discern why insurance companies feel this way. Not only are such amenities more likely to lead to fires than alternatives like gas stoves, but the potential for smoke damage is also greater.


Business facilities

If your home is also your place of business, it may result in higher insurance premiums. This might not be the case if you’re a freelance writer working off a common laptop, but if your business brings in visitors, or requires that you have specialized equipment in your home, your premiums may increase. For example, running a daycare or a message therapy clinic from your home will likely cause your premiums to go up.

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