What could negatively impact a homeowner's insurance premium?

Frequent claims history can significantly increase a homeowner's insurance premium because it indicates a higher risk to the insurance company. When a homeowner files multiple claims, insurers may view this as a sign that the homeowner is more likely to submit additional claims in the future. Consequently, they may raise the premium to offset the anticipated cost of these claims. Insurance companies assess risk based on past behavior, and a history of frequent claims can lead to a perception that the homeowner is less careful or more susceptible to losses.

On the other hand, factors like having a new roof, living in a low-crime area, and maintaining a good credit score are typically associated with reduced risk, which can lead to lower premiums. Insurers often provide discounts for homes with newer roofs, as these are less likely to have problems such as leaks or structural issues. Similarly, residing in a low-crime area can reduce the likelihood of theft or vandalism, further lowering the risk for insurers. A good credit score is also seen as an indicator of financial responsibility, which can help secure better insurance rates. These characteristics generally do not negatively impact premiums but rather enhance a homeowner's profile in the eyes of an insurer.