Can Getting A DUI Really Raise Your Homeowner's Insurance Rates?
It's a fairly well-known fact that being convicted of a DUI can cause your auto insurance rates to increase or motivate your provider to drop you altogether. Depending on the circumstances of your case, a DUI can have a similar effect on your homeowner's insurance in a couple of ways. Here's what you need to know about this issue so you can prepare yourself for this possibility.
Increased Risk
The financial fallout associated with a DUI can have a negative impact on your credit score. You'll usually have to pay attorney's fees and court costs to defend against the charges and may be assessed fines if you're convicted. Being sentenced to jail time may cause you to lose income from missing work or get laid off. If you don't have adequate savings to cover the costs and losses or are one of the 76 percent of Americans who live paycheck to paycheck, you could end up incurring debt as a result, which can tank your credit rating if you fail to make the required payments.
Your homeowner's insurance provider may raise your rates if your credit score drops. According to one report, a person with poor credit will pay up to 91 percent more for homeowner's insurance.
What's worse is some companies won't insure people who have certain felony convictions, namely ones that may put the home in danger (e.g. arson). This may not be an issue if your DUI only involved alcohol. However, the company may have a problem if you were charged with DUI for driving under the influence of illegal drugs. It may make the provider concerned the home will be/is being used for illegal purposes (e.g. drug sales), and the company may actually drop your coverage as a result. This can also negatively influence your rates with the next homeowner's insurance provider.
Claims Submitted Directly Against the Insurance
Another way a DUI can indirectly influence your insurance rates is when claims resulting from accidents you caused while under the influence are submitted directly against the policy. While it is true homeowner's insurance don't pay for damages for car accidents, they will pay claims related to accidents in other types of vehicles such as bicycles.
Since you can be charged with a DUI regardless of the kind of vehicle you were using (ex. You can be charged with a DUI for riding a bicycle while intoxicated), facts from your case may be used to confirm your liability for an accident you caused in a non-auto vehicle, and your insurance provider may be required to pay for the damages. This, in turn, can lead the company to raise your rates.
Being charged and convicted of a DUI is like throwing a rock in a lake. The rings of consequences can extend far beyond the courtroom. Contact an attorney as soon as possible if you're charged with driving under the influence. The lawyer can help mitigate those consequences so you can get your life back on track. For more information, contact Winstein, Kavensky & Cunningham, LLC. or a similar firm.
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