Can Your Homeowner’s Insurance Rate Might Increase After Moving

Change is inevitable when you move from one place of residence to another in Utah, but one thing is constant: the necessity for insurance. However, it is a crime to expect your premium to stay the same time chances are your rate is going to increase.

You might not have thought about the implications of your house-buying decision for your homeowner’s insurance in Taylorsville, South Salt Lake, Murray, or Bluffdale. Nevertheless, you ought to investigate whether your premium will increase to avoid overpaying for insurance.

For starters, below are the most common reasons why homeowner’s insurance rates go up after a move.

You Had a More Simplistic Property Then

A house with more helpful features, such as a pool, a backyard shed, and a balcony, usually commands a higher homeowners insurance rate. You need to a higher level of coverage to include non-standard items in a typical policy.

You Moved to a Dangerous Area

The more prone a house is to natural disasters, the more expensive it is to insure. The same can be said about a property located in a neighborhood with a high crime rate. Unless you agree to a higher deductible, your insurance company might charge you more to compensate for covering more dangerous scenarios.

You Relocated to a More Fire-Prone House

High susceptibility to fires is one of the catalysts for a homeowners insurance rate increase. If your new house has vinyl siding or wood roofing shakes, you might be obliged to pay a higher premium if your old home has fiber cement siding or metal roofing.

Furthermore, living farther from the fire station can negatively affect your insurance rate. The longer distance can make it harder to save your burning property and its contents.

You Bought an Older Property

You probably chose a decades-old house to save money, but it can jack up your long-term homeowner’s insurance costs. Unless it has been renovated to comply with the latest building requirements, you might have to invest in several home improvements to bring it up to code and convince your insurer to lower your rate.

You Took Out a Mortgage

Getting approved for a home loan can hurt your credit badly. Since homeowner insurance premiums are credit-based, you might have to contend with a higher rate until your FICO scores stabilize and recover over time.

You Filed a Claim Recently

Perhaps nothing is more detrimental to insurance rates than a rich claims history. If truth be told, insurance companies offer rates based on the likelihood of a person to file a claim, not necessarily on the probability of something going bad. The most impactful types are second fire, liability, and theft claims.

You Did Not Switch Insurers

Last but not least, customer loyalty. The more your insurance company thinks that you are not going anywhere, the less need there is to offer you a sizable discount to keep your business. Do not be afraid to request your insurer to lower your premium and shop around if you can’t get a more favorable rate.

It is possible to get adequate homeowner’s insurance coverage and keep your costs low at the same time if you are vigilant. Pay close attention to your premium before and after moving to avoid overpayment.

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Categorized as Management

By David Reynolds

David is the visionary author behind our business blog's comprehensive coverage of business management, finance, marketing, entrepreneurship, logistics, and investment. With a strong background in strategic business consulting, David brings a wealth of experience and expertise to the table. His passion for empowering businesses to thrive fuels his commitment to providing valuable insights and practical guidance. From unlocking the secrets of effective management to navigating the intricate world of finance, marketing, logistics, and investment, David's articles offer actionable strategies and innovative approaches. Join him on this transformative journey and unlock the keys to business success in today's dynamic marketplace.

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