Factors That Affect Home Insurance
Homeowners should understand what factors dictate their insurance rates to know what they are paying for and how much they can save. The 5 factors below will directly impact your home's insurance rates.
The materials used to build your home are very important when determining your home's insurance rates. High-end expensive materials have higher insurance rates, whereas lower-end materials cost significantly less to insure. The material used contributes to your home's insurance policy because it will need to be replaced if a claim is made.
The home's style can help you determine what kind of issues are bound to be expected down the line. Styles like townhomes and condos provide 'Walls-In' coverage also known as form H06; providing coverage for the interior of the residential unit and protection for the personal belongings of the unit owner. Styles like Single Family homes (Form H03) provide all the necessary coverage on one form except the perils of earthquakes and floods which are usually on a separate policy.
Larger square footage homes are more expensive to insure because they pose a higher risk for incidents to occur. Larger spaces mean more possibilities and more coverage. If you end up making a claim, it will be more intensive than a smaller home.
Having the latest greatest home amenities can be nice but these items will cause your insurance rates to spike. Features such as sheds, decks, and garages will cause your interest rates to increase. Risks like pools, fireplaces, trampolines, and even certain type of animal breeds make interest rates increase
Age of Property
If not cared for right, homes deteriorate as they get older. For insurance companies, older homes represent higher risks for damage and issues. Homeowners should alert their insurance agents to any recent repairs, renovations, and damage mitigating systems they have in place to keep the home young.
Always keep these 5 factors in mind to better understand what affects your home's insurance rates.
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