Fast facts:
- When a crime at your home leads to a covered insurance claim (for example, theft, vandalism, break-in damage, or remediation tied to a covered loss), any premium increase typically stems from the claim itself and local risk factors—not from the crime label. Insurers price homeowners policies using location (including neighborhood burglary/theft), construction, replacement cost, and claims history, per NAIC and the Insurance Information Institute.
- If a crime (including a homicide) occurred under previous ownership, it generally does not change the current owner’s rate; there is no “murder surcharge.” However, state disclosure rules differ—e.g., California requires disclosure of any on‑property death within the prior three years (Cal. Civ. Code §1710.2).
Across the U.S., homes tied to violent incidents are often demolished or extensively renovated to reset marketability. Evidence on stigmatized properties shows buyers frequently demand discounts and longer marketing times until the stigma fades. International market data find typical initial price impacts around 10–20% for “haunted” or death‑associated homes, with deeper cuts for notorious cases (BBC reporting on Hong Kong), and double‑digit rent discounts that diminish after subsequent tenancies in Japan (Nikkei Asia). U.S. practice recognizes stigma as a psychological factor that can reduce demand, handled via market evidence rather than a fixed formula (NAR Field Guide; Appraisal Institute Guide Note 9).
Buyer sentiment has also shifted with affordability pressures: a late‑2023 Realtor.com survey found roughly two‑thirds of respondents would consider a “haunted” house, often contingent on a price discount and added protections (Realtor.com survey). Renovations, occupancy turnover, and time tend to reduce the discount as the event becomes less salient (Appraisal Institute).
It’s a common scenario in the U.S. today.
Industry and appraisal guidance reflect that psychologically impacted properties are often torn down or significantly remodeled to restore demand—consistent with observed buyer behavior toward stigma and time‑on‑market (NAR; Appraisal Institute).
“Murder is a very frightful event,” agrees Tyler Forte, CEO of a Nashville-based real estate brokerage called Felix Homes. “But there is one crucial thing people forget: murders are violent crimes, violent crimes tend to stick out like red flags in certain towns.”
From an insurance standpoint, however, carriers focus on measurable, verifiable risks. Homeowners pricing reflects expected insured losses—driven by factors like burglary/theft exposure, dwelling characteristics, and prior claims—not notoriety or rumors (NAIC; III).
For victims and impacted owners, some costs that aren’t insured may be offset by state Crime Victim Compensation programs, which can reimburse certain cleanup expenses for eligible violent crimes, subject to caps and rules (National Association of Crime Victim Compensation Boards).
Columbine was a learning experience for parents in more ways than one. There were reparations to be made to the tune of $1.6 million, and the funds came from the shooters’ parents’ homeowners insurance.
So what happens when murder takes place inside the home? Does that affect your homeowners insurance rate, too?
How Does a Home’s Past Play Into Its Insurance Premium?
Insurers do not price a special surcharge for “murder.” Rates are built on expected losses: home characteristics, replacement cost, your claims history, protective devices, and territory‑level experience (including burglary/theft and vandalism). Location and crime matter insofar as they correlate with theft/vandalism risk—not because of a home’s notoriety (NAIC; III).
Recent data help explain why neighborhood conditions—not a one‑off event—affect pricing. In 2023 FBI national estimates, property crime rose 7.1% versus 2022 (with burglary up and motor‑vehicle theft historically elevated), while violent crime fell 1.7% and murder/nonnegligent manslaughter declined by roughly 6%. In 2024, many large cities reported further homicide decreases (Council on Criminal Justice tracking). Territorial rating uses these kinds of area risk signals and actual claims experience to calibrate premiums over time.
Claims history still matters most at the household level: multiple claims can raise your renewal premium regardless of why a loss occurred. Insurers and regulators commonly analyze multi‑year experience (often about 3–5 years) when adjusting territory relativities, so premium shifts typically lag crime changes (CCJ city‑level trend notes).
Seller disclosure of deaths and violent crimes varies sharply by state. Examples: California requires disclosure of any on‑property death within 3 years and provides a Megan’s Law notice directing buyers to the sex‑offender registry (Cal. Civ. Code §1710.2; §2079.10a). Florida and Massachusetts shield sellers from liability for not disclosing homicide/suicide/death or HIV/AIDS (Fla. Stat. §689.25; Mass. Gen. Laws ch.93 §114). New York similarly protects nondisclosure of psychological stigmas, though buyers may inquire in writing (NY RPP §443‑a). Minnesota explicitly lists “perceived paranormal activity” as not requiring disclosure (Minn. Stat. §513.56). Texas does not require disclosure of deaths by natural causes, suicide, or accidents unrelated to property condition (Tex. Prop. Code §5.008). Where the crime creates a physical hazard—like a meth lab—states often mandate notice and remediation (e.g., Colorado guidance).
Bottom line: a past homicide does not by itself raise your premium, but claims you file and neighborhood theft/burglary patterns can influence pricing over time (NAIC).
The Issue of Haunted Houses
Haunted houses are treated in most U.S. jurisdictions as psychologically stigmatized, not physically defective. Insurers pay for identifiable covered perils (e.g., vandalism, fire), not “paranormal activity,” and state laws generally do not require disclosure of alleged hauntings (Minn. Stat. §513.56; NY RPP §443‑a; III: what’s covered).
When pricing, insurers consider measurable factors—claims data, home condition, and protective devices—rather than unverified phenomena (III).
There may be a caveat, though. Allegations of paranormal activity are typically not “material defects,” but if asked directly about deaths, some states require truthful answers (e.g., California’s good‑faith response rule) or provide time‑bound duties (Cal. Civ. Code §1710.2). Separately, crimes that create contamination (e.g., meth labs) are treated as health hazards requiring disclosure/remediation in many states (Colorado). Notably, where sellers have publicly promoted a home as “haunted,” courts have limited their ability to later deny it (Stambovsky v. Ackley).
Do Murders, or Other Grisly Crimes, Affect Home Insurance Rates?
So is there an impact on home insurance when there is a murder or another crime?
Typically, a prior homicide or reputation for being “haunted” does not directly increase premiums. Pricing centers on expected losses, including burglary/theft and vandalism risk at the neighborhood level, plus the home’s condition and your claims history (NAIC). In 2023 FBI data, property crime rose 7.1% while murder decreased about 6%—illustrating why territorial pricing focuses more on property‑crime exposure than on a single violent incident at one address.
Underwriting prioritizes verifiable risk controls such as roof condition and protective devices. Many carriers offer credits for centrally monitored alarms and automatic fire sprinklers—often amounting to low‑teens or more in savings, with some guidance citing 15%–20% for sprinklers/monitored fire systems (III).
Rates can still change indirectly: a claim you file can raise your renewal premium, and elevated neighborhood theft/burglary can push area rates higher. Encouragingly, many cities reported further homicide declines in 2024, while burglary/robbery trends softened in several jurisdictions—premium impacts, if any, tend to lag due to multi‑year ratemaking cycles (CCJ).
What Does Home Insurance Cover?
A lesser-known part of home insurance includes biohazard and crime cleanups. This can include expensive and extensive cleaning services that are very necessary after a crime.
Coverage for crime scene or trauma cleanup is not automatic; it depends on policy language and whether a covered cause of loss exists (e.g., vandalism/forced entry damage). Relevant provisions may include Dwelling/Other Structures, Personal Property, and Additional Living Expense if a covered loss makes the home uninhabitable (NAIC; III on ALE). Barriers include exclusions for intentional acts by an insured, contamination/pollution, or bacteria/fungi. Best practice: ask your insurer specifically if biohazard/trauma remediation is covered and whether any sublimits or endorsements apply; when covered, it often appears under “Additional Coverages” (for example, debris removal or pollutant clean‑up, which typically has a modest sublimit and may apply only to extraction from land/water) (NAIC).
“Some home insurance policies even include coverage for death clean-up,” says Shepherd, “which may help with costs associated with body removal and cleaning up bodily fluid.”
Coverage can include these services:
- Cleaning blood from walls and flooring
- Removal and disposal of soiled carpeting
- Removal of decomposing bodies
Policies commonly include limited coverage for vandalism and may provide separate “additional coverages” for items like grave markers, subject to caps and exclusions. Biohazard cleanup often requires licensed professionals following OSHA’s Bloodborne Pathogens Standard and the IICRC S540 technical standard (OSHA; IICRC S540). Costs vary widely—from low thousands of dollars for small residential jobs to tens of thousands for complex decomposition or structural remediation (Bankrate).
Virginia Hamill is a Senior Insurance Analyst at FitSmallBusiness who previously worked within Insureon’s wholesale division. She says it is possible that death cleanup coverage can affect your homeowners insurance policy. “If someone is murdered in your house and you end up filing a claim for the cleanup, your insurer could increase your rates,” she says, but adds that “it doesn’t seem very likely.”
When cleanup is necessary, insurers frequently open a claim to restore the property if a covered peril triggered the damage. Use qualified firms and coordinate scope and documentation with your adjuster (OSHA/IICRC compliance, regulated waste manifests) to maximize the chance of coverage (OSHA; IICRC S540).
Please note: intentional acts by an insured are generally excluded under homeowners policies, which can bar coverage in certain crime scenarios (NAIC).
The Impact of Murder on the Neighborhood
Neighborhood conditions can influence pricing for everyone in the area. Territorial rating reflects local loss experience—especially theft, burglary, and vandalism. Nationally in 2023, property crime increased 7.1% while violent crime, including homicide, declined; large cities reported additional homicide decreases in 2024 (CCJ). These trends affect homeowners premiums indirectly and locally and often with a lag as filings use multi‑year data (III).
If you live in an area frequented by burglary and related crimes, expect higher insurance rates due to the elevated risk of theft/vandalism claims. Carriers may also tighten underwriting or require protective devices in higher‑risk micro‑areas (NAIC; III burglary/theft).
Higher local theft/burglary frequency in 2022–2023 aligned with FBI property‑crime patterns, prompting some insurers to adjust appetites, deductibles, or credits—while theft remains a smaller share of homeowners claim dollars than water, wind/hail, and fire (III; LexisNexis U.S. Home Trends Report).
Encouragingly, many cities saw homicide declines in 2024. If improvements in burglary/theft follow and persist locally, future filings can reflect lower indicated loss costs—though timing depends on multi‑year experience and regulatory review (CCJ).
How Can You Lower Premiums if Your House Has One of These Issues?
Premiums have risen sharply in recent years largely because of rebuilding costs, catastrophe losses, and reinsurance—not crime. The CPI category for “household insurance” posted low double‑digit year‑over‑year increases through late 2024 (BLS). If you’re facing higher bills—whether due to claims or neighborhood risk—there are targeted ways to mitigate costs.
Old notoriety at an address usually has little to no pricing effect; insurers focus on today’s measurable risks and claims. Stigma’s impact on market value tends to shrink with time, renovations, and occupancy turnover, though highly publicized cases can persist longer (Appraisal Institute).
For more recent events, he recommends that you shop around for the cheapest homeowners insurance and improve your credit score. “These tend to have more of an effect on your home insurance than a dark history anyway,” he says.
Security upgrades can reduce both risk and price. Typical, commonly available discount ranges include about 5% for basic protective devices (smoke alarms, deadbolts) and roughly 15%–20% for centrally monitored fire/burglar alarms or automatic fire sprinklers, where eligible (III; NAIC). Many carriers also incentivize smart leak detection and automatic water shutoff via program‑specific discounts (Progressive; Nationwide Smart Home Program). Maintain monitoring and keep proof of installation to preserve credits.
If you are embarking on the process of homebuying, Musson says that a previous crime could have an effect on a home’s value. “If you’re looking to buy a house, you may get a good deal if you’re alright buying a house where a murder has occurred. A home’s value makes a difference in home insurance rates, so you may see lower rates, thanks to the stigma surrounding your home.”
Claims don’t follow a property forever. Insurers and regulators frequently use multi‑year (often 3–5 years) experience windows when pricing territories, and prior claims beyond that horizon typically lose relevance; localized pricing shifts also phase in/out as area risk changes (CCJ).
In any case, you can lower premiums by addressing known and provable defects—roof condition, wiring, water systems, and other verifiable hazards. These matter more to insurers than any alleged haunting (NAIC).
After all, he says, “Getting these issues resolved will lower insurance rates, whether or not Casper occupies the premise.”
The Bottom Line
There are many factors that impact the cost of your home insurance. The crime itself is not a rating variable, but its implications—covered damage and cleanup that lead to claims, or elevated neighborhood burglary/theft—can affect what you pay. In 2023 FBI data, property crime rose 7.1% while murder fell roughly 6%; many cities saw further homicide declines in 2024 (CCJ). Meanwhile, household‑insurance premiums climbed at a low double‑digit pace in 2024 due largely to rebuilding costs and catastrophe pressures (BLS).
“While the cost of home insurance can rise due to filing multiple claims, living in a high-crime neighborhood or changes in the value of your home,” says Shepherd, “you won’t see higher insurance rates just for having a murder or dark past associated with your home.”
“The scariest thing to an insurance company is someone who files a ton of claims in a short period of time,” Lewis tells us. “Now, that’s spooky!”
Featured image by Stevica Mrdja / EyeEm / Getty Images.
