16 Things To Get Rid of To Lower Home Insurance Bills

If you haven’t reviewed your homeowners insurance policy coverages in a while, you may be paying for certain things that no longer apply. If you want to lower home insurance bills even further, you can get rid of certain features on your property or make permanent changes that will make your home insurance company happy. Speak with your agent beforehand to see which modifications are eligible for a price break. There is no faster or better way to lower home insurance rates, however, than to compare home insurance rates. Here are 16 things you can do to pay less for insurance, regardless of which insurer you choose.

Key Takeaways Removing certain features in a home that pose a danger will reduce your home insurance rate. If you stop running a business from home make sure to remove a home-business endorsement. Check all your home insurance riders to make sure you still need them all.

1. Swimming Pool

A swimming pool can increase home value, especially if it’s a nice in-ground pool with temperature controls. However, swimming pools in the eyes of insurance underwriters are what’s called an “attractive nuisance”: They attract trespassers, namely children who may get into the pool while you’re away from home or are sleeping. Not only is there a high risk of drowning if that happens, but the homeowner is also the one held liable for injuries or death, even if the pool was used without permission. You can fence it up very securely for a price break or get rid of the swimming pool altogether for an even steeper reduction. It’ll cost you anywhere from $1,500 to $10,000 to get a pool fence, depending on how large the pool is and the type of fencing you buy. A gate costs about $150 per opening. ^[8][9]

2. Trampoline

Trampolines are another attractive nuisance: Kids love them and will climb aboard without permission if they can see the trampoline from street view. Just as with a swimming pool, a homeowner is often held liable for injuries and death, even if the people using the trampoline did so by trespassing. Homeowners insurance companies will consider protective fencing, but getting rid of the trampoline will save you the most in home insurance premiums. It should cost about $2,300 to $3,600, depending on linear footage equalling 100 and 150 feet. A gate costs $150 per opening.^[9]

3. Hot Tub

A hot tub is relaxing until you look at how much more you’re paying for homeowners insurance because of it. Although shallow, hot tubs present the risk of drowning. Like swimming pools and trampolines, they are attractive nuisances that are also the target of trespassers. You can lower the rate by securing the hot tub so it cannot be accessed without a keyed fence or you can lower your premiums a lot by getting rid of the tub altogether. ^[5] For a 100 to 300 linear foot fence, it will cost roughly $2,300-$6,900. Each gate costs $150 per opening. ^[9]

4. Playground Equipment

Some playgrounds are more dangerous than others. If your insurance company is aware of playground equipment that can cause serious injuries, they will raise your rate. Swings without closures, monkey bars, seesaws and slides as well as equipment with sharp edges may be concerning to insurers. If your kids are grown, find out if you’d get a home insurance discount for removing the equipment. For a 300-linear-foot fence, you’re starting at just over $7,000. ^[9]

5. Tree House

What would you do if your child’s friend fell from a tree house on your property? Well, you could file a home insurance claim and take care of the medical bills from the injuries. Insurance companies are aware of this risk and will rate you higher if you have a tree house. Consider removing it for a lower monthly premium.

6. Wood-burning Stove

Wood-burning stoves are already illegal in some states or in certain jurisdictions due to air-quality concerns. Tax incentives are offered in some states for switching to gas or electric heating. ^[1] Not only is the pollution they emit dangerous for inhalation but wood-burning stoves also pose a fire risk if they have poor ventilation, aren’t cleaned properly or don’t have enough clearance. ^[2] If you have one, you may be paying more for home insurance.

7. Fireplace

A poorly maintained or dysfunctional fireplace can start a house fire. Even when it is functioning properly and the flue is cleaned and cleared, it takes one instance of not heeding clearance (if the fireplace has an adequate one) to start a blaze or cause injury to a guest. Some people make the mistake of using flammable liquids, like gas or kerosene, which can easily engulf the home in flames. Gas and electric fires are less hazardous in general but can still cause injury. ^[3] If you’re looking to trim your monthly bill, ask your insurance agent if the fireplace is rating you higher, and see what kind of discount they’ll offer for you to turn it into a decorative fireplace instead. You may be required to show documentation of the modification.

8. Home Business

You may have a home policy endorsement for a home-based business, which is tacked onto an existing home insurance policy, adding coverage for commercial property, such as computers, printers and business-related inventory as well as liability. Or, you may have a standalone commercial policy for the business. ^[4] Either way, if you stop running your business from home, don’t forget to get rid of the coverage to lower your monthly premium. Or, if you no longer store inventory there, you may be able to trim your costs. Report any changes to your agent to find out what the new price will be. Better yet, compare insurance rates to get the best deal.

9. Oil-based Heating System

Not all oil-based heating systems are dangerous but insurers know that if something does go wrong, like a leak or a fire, the large reserve of oil is highly combustible. Insurance companies will rate a property lower if it uses forced-air furnaces or heat pumps. ^[5]

10. An Aggressive Dog Breed

You may know deep in your heart that your beloved pit bull would never harm anyone, but certain aggressive dog breeds trigger higher home insurance rates or even coverage denial, because insurers have seen higher numbers of liability claims filed for dog bites amongst certain breeds.

11. Unnecessary Riders

Have your circumstances changed or you’ve sold something you once needed to insure? Common homeowners insurance riders include:

• Ordinance or Law: Brings an older home up-to-date on building codes when the home is damaged, if the cost of doing so exceeds homeowners coverage limits. It’s not advisable to drop this coverage on an older house.

• Business Property: Covers the repair or replacement of business property, like home-office equipment and inventory. If you no longer store inventory at home or stop running the business out of your home, report this to your insurer.

• Earthquake Endorsement: While standalone earthquake policies exist, a simple rider added to a home insurance policy is less expensive. You may, however, not need one based on where you live. See if you live in an earthquake-prone area, based on FEMA’s earthquake hazard map.

• Flood Coverage: With natural disasters becoming increasingly destructive, it’s a safe bet to have a flood endorsement or standalone policy, but again, only if you live in an area that may be affected. Start researching your risk according to FEMA’s flood-risk predictions in your part of the country.

• Identity Theft Protection: If you already have a third-party app, like Norton’s LifeLock, you can drop this type of rider and save some money.

• Scheduled Property Coverage: People buy scheduled property coverage for expensive jewelry or watches and collectibles or artwork. If you sell any of these items or store them elsewhere, like in a bank, make sure to report changes to your insurer.

• Water Backup: Covers the repair of water damage caused by a sewer line, drain or sump pump. It does not cover the repair or replacement of pipes or pumps. The cost of repairing your water line will be on you if you drop this coverage.

12. Unnecessary Coverage Limits

Your home may be worth $600,000 on the market but will it cost $600,000 to rebuild if it was completely destroyed? Figure out what the rebuilding cost is and then create an inventory of possessions, and make sure you use these separate figures to get the right coverage limits for rebuilding (Coverage A) and your stuff (Contents Coverage), not the home’s real estate value.

13. Dilapidated Other Structures

If you have a shed that is falling apart or a gazebo that looks more like an outhouse due to neglect, it may be time to have these old structures removed. Abandoned structures that are in disrepair pose a danger because people can be injured while on the property. If your house is dilapidated, and has old wiring and foundation issues, you will have a hard time getting insured at all. You may need to repair the main structure or demolish it and rebuild in order to get homeowners insurance coverage.

14. Low Deductible

If you’re struggling to pay your homeowners insurance premiums, don’t cut any coverages that you may potentially need. Increase your deductible, and it will decrease your monthly payments. Just save enough to cover that deductible in case you ever have to file a claim.

15. Replacement or Extended Replacement Coverage

Replacement cost value homeowners insurance and extended replacement coverage will cost much more than actual cash value coverage. A replacement cost value policy will pay out the full value of losses while actual cash value coverage will take depreciation into consideration, thereby reducing a claim payout. However, your monthly bill may be much cheaper.

An extended replacement coverage endorsement also costs extra but can be added to a home insurance policy for additional coverage, safeguarding you against having out-of-pocket expenses if you do have to file a claim. When a natural disaster hits a certain area, construction costs in that area spike, making an extended replacement cost endorsement a life saver. ^[6] However, if you’re struggling to pay bills, you may want to consider dropping this coverage and increasing your dwelling coverage, if possible. Make sure that increasing coverage with the endorsement may leave gaps in coverage so make sure to speak with an agent to see if it’s worth the savings in premiums.

16. An Old Roof

An old roof will increase your homeowners insurance rates, and if it is damaged during a storm, you will not get full coverage for damages like you would with a newer roof. It is standard for home insurers to place responsibility on the homeowner to maintain the roof to protect damages that may arise due to wear and tear. An insurance adjuster will inspect the roof and determine whether or not it was in bad shape before the storm damage.