by Melissa J Luther

Created on: August 16, 2010   Last Updated: August 20, 2010

When most people think of homeowner’s insurance, they think of protection against theft, fire or natural disaster, and they think of a loss in terms of damage to the home or its contents. As such, they mistakenly assume that the value of their property and possessions is the only factor that determines the cost of their coverage. However, homeowner’s insurance policies cover additional perils, such as liability. In addition, insurance companies deal in risks, not absolute values. Therefore, they assess the likelihood that you will suffer a loss when they calculate the cost of your policy.

Here are four factors that many people do not realize can have a major impact on the cost of a homeowner’s policy, and possibly prevent you from getting coverage at all.

Pets can Affect Homeowner’s Insurance Rates

Believe it or not, your pet can affect your ability to get homeowner’s insurance, as well as how much it will cost you. Most insurance companies have a list of dogs for which they will not provide liability coverage or will charge extra. Dogs on this list tend to be large, powerful animals capable of causing serious injury or breeds with a higher than average number of biting incidents. Breeds often on the “do not insure” list include:

* German shepherd

* Doberman

* Pit-bull

* Akita

* Alaskan Malamute

* Chow Chow

* Presa Canario

* Rottweiler

* Siberian Husky

* Wolf hybrid

It is completely legal for insurers to refuse to insure you, or even drop existing coverage, if your dog is on their list, even if your particular animal has no history of aggressive behavior. Some states are considering legislation to make such “breed profiling” illegal, but until then, be aware that your insurance company may not love your dog as much as you do.

Many exotic animals, such as large snakes or alligators are also excluded from liability coverage.

Previous Claims on the Home

When you apply for home insurance, the company will investigate claims made by both you and the seller in the previous seven years. If either of you has a history of claims, you may be denied coverage, or may have to pay more for it.

This may be true even if the homeowner never actually filed a claim, but just asked about it and then fixed it himself. This is because insurers open a file every time a customer even asks about a possible loss. This entry then goes into the Comprehensive Loss Underwriting Exchange (CLUE) database, which insurers use to investigate

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