We all hear about the rising cost of health care these days but it looks like we should be watching our homeowner's insurance, too!  Insurers are placing more risk on policyholders by changing policy language, charging more, or interpreting coverage to the detriment of homeowners.   Why?   Because of things like Chinese drywall, living in coastal areas, lower home prices, and lower credit scores.

1)  Consumer Reports says after Chinese drywall created both property damage and health issues, some homeowners filed insurance claims. Insurers quickly rejected the claims and in some cases dropped policy holders claiming customers and their homes were subject to risks not covered by their policy.

2)  Coastal states' premiums are increasing most. Insurance premiums for renters and home owners rose an average 3.2% in 2009, but much more in recent years in coastal states -- 11.4% in Louisiana and 10.6% in Massachusetts, both from 2006 to 2007.

3)  Lower home prices. Depressed property values turn thoughts to less coverage, but insurance coverage isn't based on your home's market value. It's also based on the cost to rebuild -- labor and materials. Many home owners had insufficient coverage even before values fell.

4)  Credit scores. While some states are fighting the trend, credit scores are more and more a factor in underwriting. Your credit score is a numerical rendition of your credit risk, your risk of experiencing financial trouble. That's become central to how an insurer determines your premium.

5)  Coverage for modern-day concerns. Many major carriers sell identity-theft coverage as a stand-alone policy or endorsement to your homeowner’s policy. The coverage might reimburse you for lost wages, notary fees, and legal fees if your identity is stolen.   

It might be a good idea to take a second look at your policy and shop around!