There are many factors which effect your Homeowners Insurance Rates.
Homeowners Insurance Rates
Does anyone even know what factors effect your Homeowners Insurance Rates? If not, you’re in good company. Basically, a computer algorithm makes the determination by using many variables. If you want to keep your rates as low as you can, and who doesn’t, here’s a few factors to consider.
The Homes Age and Condition
This is one of the biggest and most obvious factors. The older the home, the larger the risk of wiring and plumbing that don’t meet today’s safety codes. Therefore, there’s a higher risk of damage or fire, which means your insurance will cost more.
Do you have Pets?
Sometimes, the breed of pet you have can cause your premiums to rise. Certain breeds of dogs, such as pit bulls, are notorious for being dangerous. And this can increase the liability. As a result, owning a dog of these breeds will cost you. Additionally, some insurance companies will refuse coverage for these breeds. This can either be total refusal to insure the property or just no coverage against claims due to these breeds.
Are You in a Flood Zone?
Especially in our area, along the coast, there is a risk of flooding. Just think of Hurricane Sandy. Therefore, you’ll need flood insurance if you’re in what the government labels a “Flood Zone”. And this insurance will cost you. So, if you want a waterfront home, higher insurance is just a part of the expenses associated with the home.
Location to fire protection
Are you near the local fire department? How long will it take a fire truck to arrive if needed? Is you home located within a certain radius of a fire hydrant? The longer the time frame needed to get water onto a fire is a factor which will affect your Homeowners Insurance Rates.
Do you have a Swimming Pool?
A swimming pool, a playground set, a trampoline and more can also be responsible for raising your Homeowners Insurance Rates.
Speak with your insurance agent and inquire about what you can do to reduce your rates. It may be that, by combining your homeowners and auto policies, you’ receive a multi-policy discount. Adding dead bolts to the doors or an alarm may help also. However, be truthful. Don’t lie or intentionally exclude information on your application. Because this could possibly result in coverage being denied when you need it most.
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