Risks That Raise Rates

While most people buy home insurance to protect property from damage, liabilities from accidents on your property are often what drive up your insurance rate. "Legal liability can be more costly to home insurers than property damage," says Loretta Worters, vice president of the Insurance Information Institute. "People sue for millions of dollars for minor injuries. Companies are not going to walk away from the business because you have a dog or pool, but they'll charge you more." Unforeseen or overlooked risks can drive up premiums or even lead to a rejection. Here are some of the biggest rate-boosters.