7 points that increase the insurance costs for homeowners
Why is my apartment insurance so high?
If you are a new homeowner, this question probably came to mind. Unfortunately, there are many things in your home that cannot be changed (i.e. its location and structure) that will inevitably increase your insurance costs. However, despite these existing conditions, there are ways you can minimize risk and possibly achieve lower rates in the future.
Those looking for a new home should also be aware of home features and structural features that affect home insurance costs. Although it is easy to be impressed by the marble surfaces of the house, the updated appliances, but it is worth knowing that the structure and its foundation have a great impact on the overall costs. If moving to a new area in the country, be sure to research regional issues before you find properties. For example, if moving from the mountains to the beach, you might want to look at how living in a flood-prone area will affect your insurance costs. Of course, the policies of each insurance company are different, so be sure to get a number of insurance quotes before you decide on a policy.
Want to understand what increases your insurance costs? Here are 7 characteristics that typically affect home insurance rates:
Structure and age:
From a wooden frame to brick construction, the first thing to consider when assessing the risks of a home is its structure and age. Many potential homeowners consider this the most important factor when buying a home. In general, the older the home and the worse its condition, the higher the insurance premiums will be. In some cases, insurance companies may vehemently refuse to insure a home simply because it is too risky. Some things to keep in mind: Wooden houses are considered to be more flammable and therefore, more dangerous. Insurance rates for these homes will generally be higher than for a brick home.
Place:
Of course the location will affect your home insurance costs. The more dangerous the location of your home, the more expensive it will be to secure the place. For example, people living in areas of the country that are prone to hurricanes, tornadoes, earthquakes or other natural disasters may be forced to pay higher insurance rates. However, if you live in an area where natural disasters occur, you can minimize insurance costs by purchasing a home built to withstand weather damage. For example, many Florida residents prefer to live in a home
Concrete vs. wood due to insurance costs. Because concrete houses are less vulnerable to hurricane force winds the risk of damage is lower, which means insurance premiums will also be lower. Those who live in hurricane-prone areas may also need to purchase additional flood insurance. Unfortunately, there is not much you can do to eliminate this risk if you live near the shoreline. So when searching for a home, carefully assess the location of the home and its subsequent risks before making the purchase.
Home safety:
Is the house in a neighborhood where crime rates are significantly higher than average? Note that this may affect your home insurance costs. Often, homes located in high-crime areas are cheaper. However, high insurance costs may offset this savings, so be sure to consider whether the home price is really worth it. Of course, you can lower your rates by increasing home security. Installing a home security system, new locks and surveillance cameras may help reduce home insurance costs.
Roof condition:
Many home buyers forget to consider the roof condition of the home when looking for a new home. However, this item can have a big impact on your insurance premiums as well as your bank account. Replacing a roof can cost up to $ 25,000 or more, depending on the materials and size of the home. In addition, a structurally unhealthy roof is less likely to provide adequate insulation. This causes a decrease in the efficiency of the system
Electricity and energy bills are higher. In general, the older and more damaged the roof, the more expensive home insurance will be. To minimize your risks, be sure to perform routine maintenance and repairs. In addition, choose the roof that best suits your specific climate and geographic location to help lower insurance premiums. For example, those living in hurricane-prone areas may choose a home with a metal roof, as this material can withstand strong winds.
Pools and Jacuzzi:
If you're one of the millions of people who have a pool or hot tub in their backyard, be prepared to pay higher insurance premiums. Unfortunately, pools and hot tubs carry serious risks for homeowners and anyone who swims in these backyards. For this reason, insurance companies consider pools to be "attractive nuisances." To protect themselves from pool-related claims, many pool owners will need to purchase additional warranty protection, which may add up to high insurance costs. Typical policies include $ 100,000 of warranty protection. However, policyholders often have to purchase an additional $ 500,000 to protect against potential claims from swimming pool injuries. However certain preventative measures, such as adding perimeter fences around the pool and / or alarms on the doors, may help lower the cost of protection from liability.
Trampolines:
Trampolines are found in thousands of backyards in the United States. Despite their popularity, it requires high insurance premiums for homeowners. Due to the risks involved in trampolines, homeowners must generally purchase additional warranty protection. A homeowners insurance policy may provide trampoline coverage, assuming you have certain precautions. These precautions usually include installing a closed safety net of a trampoline around the trampoline to protect children and adults from falling. However, it should be noted that trampolines may be completely out of line with the home insurance policy. This means your policy will not provide protection for trampoline-related claims. If you have a trampoline, make sure you have an in-depth understanding of your insurance company's policy regarding these features.
Wood stoves (fireplace):
Do you have a wood stove in the house? If so, it may increase your home insurance costs. Given that wood stoves are more likely to ignite a fire than modern appliances, this type increases your risk of fire damage (at least, in the eyes of many insurance companies). However, you may be able to find insurance that does not consider a wood stove as a risk. You may also be able to get a better rate by purchasing a fire extinguisher, adding a smoke detector near your kitchen and ordering a licensed technician to perform routine maintenance on the wood stove.
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