Protecting Your Biggest Investment: What Factors Affect Your Home Insurance Cost

Among the many important life choices you’re ever going to make, purchasing a house is likely your greatest investment. So much time, effort, and money go into building the perfect house, somewhere you can relax and truly feel at home.

Naturally, you want to make sure that the beautiful place you’ve put so much time and care into is adequately protected by a home insurance plan that will cover your costs in the event of an accident or environmental damage.

It is a given that the value of your home plays a big role in determining your insurance premiums; however, many homeowners don’t realize that there are also a multitude of other factors that can affect home insurance premiums. Let’s explore seven unexpected things that can affect your home insurance rates, and how you can stay one step ahead.

1. Recreational Additions: Trampolines, Pools & Treehouses

You’re probably thinking that this is a strange collection of personal property items that may have nothing to do with one another. Probably you’d file them under recreational investments. The legal system, however, refers to them as ‘attractive nuisances’. These are items located on your property that commonly attract the attention of children and that could cause them injury.

While the child would have to trespass on your property to get himself/herself injured in the first place, you will likely still be held accountable should there be any accidents. As a result, the cost of personal liability in your home insurance plan increases with every addition of an ‘attractive nuisance’ on your property. Other examples include abandoned vehicles and discarded building materials.

How to Stay Protected

Before adding any recreational feature, consult your insurance broker. They can confirm whether your policy covers it, what safety requirements must be met, and whether you need additional liability protection.

2. The Breed of Your Dog

Dogs are wonderful additions to the family. However, they do not always treat strangers with the same affection as their owners. Pets that have a generally higher risk of injuring neighbours drive up the value of your personal liability premiums. Unfortunately, certain dog breeds have been branded as persistently aggressive and deemed too dangerous to insure, resulting in them being blacklisted by various insurance companies. Commonly blacklisted dog breeds include the Pit Bull, Rottweiler, German Shepherd, and others.

What You Can Do

Be upfront about your dog’s breed and behaviour. Misreporting or omitting this information could void coverage if an incident does occur. An independent insurance broker like Rowat Insurance can help you find a company that’s more flexible or experienced with pet-friendly policies.

3. Your Neighbourhood and Geographic Location

Insurance companies are likely to offer more expensive insurance plans to homeowners who reside in areas with:

• A higher likelihood of theft and vandalism

• Increased vulnerability to natural disasters (such as earthquakes and flooding)

• Limited access to fire stations

If your location threatens your home with the risk of damage or loss (e.g., if your house is situated near a fault line, coastal areas, and/or a rough neighbourhood), then home insurance companies are going to charge you a higher premium for coverage.

How to Offset These Risks

Depending on your home’s location, consider installing monitored security systems, smoke detectors, and water sensors. Check with your insurer to see if they offer discounts for these features. If you live in a flood-prone area, installing a sump pump with backup power is a great idea. These can not only reduce your insurance premiums but also proactively protect your home from the risk of flooding. 

4. The Age and Condition of Your Home

Older homes often have outdated wiring, plumbing, and roofing, which pose a greater risk of fire or water damage. Knob-and-tube wiring or obsolete plumbing systems can cause insurers to flag your property as higher risk, increasing your rates.

How Maintenance Affects Premiums

If you live in an older home, updating its roof, electrical system, or plumbing will make the home safer, increase its resale value, and possibly reduce your insurance premiums. Make sure to save all receipts and documentation of renovations, as your insurer may request proof before adjusting your rate.

5. Your Home’s Security and Safety Features

Modern security and safety equipment can protect your family and offer peace of mind, while also leading to additional savings. Insurance providers view homes equipped with smoke alarms, carbon monoxide detectors, smart locks, or monitored alarm systems as lower risk, thus offering additional discounts to homeowners.

Simple Steps for Savings

Ask your insurer about available discounts for monitored alarm systems or integrated smart-home security. Bundling your home and auto insurance under one provider can also reduce costs and simplify your coverage management.

6. Your Claims History

Your personal claims record is one of the strongest indicators insurers use to predict future risk. If you have a history of frequent small claims, chances are you will make more claims in the future, which means the insurance provider will increase your premium.

Pro Tip

Before submitting a claim, speak with your broker. They can help you decide if it’s worth filing or if handling the repair out of pocket might save you from future premium increases.

7. Your Credit Score and Payment Habits

In many provinces, insurers may review your credit score to assess financial reliability. Homeowners with higher credit scores are statistically less likely to file claims and often receive lower rates as a result.

Good Financial Habits Help

Pay your premiums on time and maintain a strong credit history. Setting up automatic payments or annual billing can help you avoid missed payments that might impact your renewal terms.

Understanding What You Can Control

While some factors that affect home insurance costs, such as location or home age, are beyond your control, others can be improved with a little effort. Maintain your home well, upgrade its safety features, and work with an experienced insurance broker to secure the lowest possible rate.

At Rowat Insurance, we help homeowners understand these factors and identify where savings are possible. By reviewing your policy regularly, we can make sure you’re covered appropriately without paying for unnecessary risk.

Protect Your Home with Rowat Insurance

At Rowat Insurance, we’ve been helping Ontario homeowners protect what matters most since 1955. Every home is unique—and so is your coverage. Let’s review your policy together and ensure you’re getting the protection you deserve. Contact us today to request a quote or speak with one of our experienced insurance brokers.