When insurance companies have a high number of claims due to certain risks, they tend to hone in on those risks and will either not write a policy because of them or will no longer cover them. Here are a few risks that insurance companies have taken a pretty tough stand on in recent years.
Man's Best Friend
That cute little puppy of yours may not harm a fly, but your insurance company doesn't care how sweet he or she is... If your dog is an “aggressive” breed, most companies will cancel your insurance, if and when they find out you have a dog of that breed. According to insurance companies, "aggressive” breeds include: Pit Bull, Chow, German Shepherd, Rottweiler, Doberman Pinscher and any other breed that usually gets a bad rap for being aggressive. The insurance companies aren't ignorant of this either! Did you know that insurance companies paid out $530 million in dog liability claims in 2014? That is an incredible amount of money, and is why they are becoming more strict on the dog you can have, and how much liability coverage they will allow for your dog.
If your kids are asking for a trampoline for Christmas, you'd better call your insurance agency first and discuss it with them! This is a really fun toy that could result in your homeowner's insurance policy being canceled. Most insurance companies will not allow trampolines and will cancel your insurance if they find one during a routine inspection of the property. The insurance companies have the statistics to back up this preference as well! Between 2002 and 2011 the total costs in trampoline injuries was $1 billion. Those injuries can result in lawsuits against your homeowner's insurance personal liability coverage, and that is why insurance companies want nothing to do with your fun-filled bounce machine.
Having a pool in Florida is almost a must, and a great way to make your pool even more fun is to add a slide or diving board. Before you add these items, you should definitely check with your insurance agent. Most companies do not allow for a diving board or pool slide and will cancel your policy if they find either during a routine inspection. The insurance companies use the same line of reasoning on these items as the other risks. There is a substantial risk of injury and therefore a high risk for a liability claim.
We've Got You Covered
I know insurance companies can be perceived as being no fun or having ridiculous rules, but there is usually a reason for them. The cost of claims is a massive driver of these “no fun” rules. The insurance companies not only protect their clients, but have a responsibility to protect themselves against frequent high-cost claims. This helps them keep your premium low! If you have one of the above mentioned fun items, hope is not lost... We still have quality insurance companies that will write home insurance policies even with the an “aggressive” dog, trampoline, diving board or pool slide. There are just a limited number of companies that will write with these risks.