Factors That Significantly Affect Your Home Insurance Premium
If you have invested quite a lot of money on your home, then it is likely that you would want to get the best form of protection for your home. Home insurance is a risk management investment that helps to lower your risk. There are different types of coverage available for home insurance and each type of coverage deals only with particular risk issues. Customizing your coverage is the most ideal way of getting the most protection possible and at lowered cost.
- Home Location – if you live in an area where crime and theft are a common scenario, the insurance company will most likely consider you as a high risk client and therefore cannot extend you any courtesy of lowering your home insurance premium. The fact that you live in such an area wherein the inevitability of being victim to theft, home intrusion, property damage, and vandalism is at a high most probability. Homeowners who live in relatively crime-free areas have the benefit of lowered premiums due to their assessed low risk.
- Cost of Construction – insurance companies will always take into consideration the cost of construction as to where you house is situated. The relevance of this is that the insurer becomes informed on the cost of construction within your locality. In the future, should your house experience any serious property damage, the insurance company will be able to adjust the amount of your claim based on the construction cost of your neighborhood or locality. These adjustments are necessary because you surely would not want to shoulder the additional expense due to high construction costs.
- Type of Materials – homes that are constructed using high quality and highly durable materials will have the structural strength to resist or withstand hurricanes and tornados. Homes that are assessed of being made with substandard construction materials as well as cutting corner issues will not fare well on wind-related calamities. Homes that are not up to par with construction material standards will be required to pay more on their home insurance premiums.
- Other Factors – unfenced swimming pools, possession of biting dog breeds, as well as prior issues of home intrusion and break-ins makes your home pretty much a disaster waiting to happen along with claims just waiting to be made. Insurers pay very close attention to these issues as this becomes their determining factor on whether to raise or lower your home insurance premium.