Insurers look at more than home value when calculating homeowners insurance rates. Your premiums can be affected by some of the factors below:
When setting a premium, insurers factor in general wear and tear on your home. They will inspect such things as the condition of the roof, porches, decks, and the integrity of the home's wiring system. Because new homes tend to be in better condition than older homes, some insurers will offer up to a 15 percent discount if your home is new. In a new home, the electrical wiring and the plumbing are important features. It is also cheaper to insure homes built of brick, concrete and stone because they are sturdy, fire-resistant materials; wood-constructed homes are softer, and more flammable.
It is less expensive to insure certain types of homes that are more damage-resistant. For instance, a brick home's resistance to wind damage makes it preferable.
Many insurers also offer discounts of approximately 5 percent for safety features such as burglar alarm systems, deadbolts, window locks, smoke detectors, and sprinkler systems. If your home is in close proximity to a fire department, you may also receive a discount.
Risk objects like fire and burglar alarms, as well as swimming pools and bathtubs will also be considered. If safety devices have been installed, you might receive deduction for that as well. But features like swimming pools are an additional risk factor that could add to the cost of the insurance.
A major factor for homeowners insurance rates is the location of the home. Rates may be higher if the home is at-risk for wildfires, flooding, or other natural disasters. Another consideration is whether the home lies in a high-crime area. Elements of safety are a consideration too. For instance, your premiums will be affected if there is not a fire station within 5 miles.
Type and Amount of Home Insurance Coverage Needed
Usually, homeowner's insurance covers loss or damage to your home and its contents, but other benefits such as personal liability coverage if someone is injured on your property or theft insurance are available with some packages. Make sure you read all the fine print. Although packages might appear similar, there can actually be a big difference in prices and coverage. Make sure you use what you get and get what you need.
The deductible is the amount that you the policyholder must pay before your insurance company starts paying benefits. The higher your deductible, the lower your home insurance premiums. By raising the deductible, you can save up to 50 percent of the cost of your homeowner's insurance.
If you're young and have just purchased your first home, your insurance rate may be higher than people who are long-time homeowners or older and well established in the community. A reduced rate is offered by some insurance agencies to retired individuals.
You can expect some questions about your lifestyle when an insurance agent nails down your rate. What could be at the top of the list? If you smoke, this increases the risk of fire and damage to the home so might result in a higher rate.
When setting a premium, insurers factor in general wear and tear on your home. They will inspect such things as the condition of the roof, porches, decks, and the integrity of the home's wiring system. Because new homes tend to be in better condition than older homes, some insurers will offer up to a 15 percent discount if your home is new. In a new home, the electrical wiring and the plumbing are important features. It is also cheaper to insure homes built of brick, concrete and stone because they are sturdy, fire-resistant materials; wood-constructed homes are softer, and more flammable.
It is less expensive to insure certain types of homes that are more damage-resistant. For instance, a brick home's resistance to wind damage makes it preferable.
Many insurers also offer discounts of approximately 5 percent for safety features such as burglar alarm systems, deadbolts, window locks, smoke detectors, and sprinkler systems. If your home is in close proximity to a fire department, you may also receive a discount.
Risk objects like fire and burglar alarms, as well as swimming pools and bathtubs will also be considered. If safety devices have been installed, you might receive deduction for that as well. But features like swimming pools are an additional risk factor that could add to the cost of the insurance.
A major factor for homeowners insurance rates is the location of the home. Rates may be higher if the home is at-risk for wildfires, flooding, or other natural disasters. Another consideration is whether the home lies in a high-crime area. Elements of safety are a consideration too. For instance, your premiums will be affected if there is not a fire station within 5 miles.
Type and Amount of Home Insurance Coverage Needed
Usually, homeowner's insurance covers loss or damage to your home and its contents, but other benefits such as personal liability coverage if someone is injured on your property or theft insurance are available with some packages. Make sure you read all the fine print. Although packages might appear similar, there can actually be a big difference in prices and coverage. Make sure you use what you get and get what you need.
The deductible is the amount that you the policyholder must pay before your insurance company starts paying benefits. The higher your deductible, the lower your home insurance premiums. By raising the deductible, you can save up to 50 percent of the cost of your homeowner's insurance.
If you're young and have just purchased your first home, your insurance rate may be higher than people who are long-time homeowners or older and well established in the community. A reduced rate is offered by some insurance agencies to retired individuals.
You can expect some questions about your lifestyle when an insurance agent nails down your rate. What could be at the top of the list? If you smoke, this increases the risk of fire and damage to the home so might result in a higher rate.