The home insurance cost changes, depending on the house and the policyholder’s circumstances. For your reference, here are some of the factors that affect your rate.
Features and characteristics of your home
Your home insurance premium can be affected by your house’s type of structure, garage, roof, wiring, age, etc. If you used frame, brick, stone, or if it has synthetic siding also matters. Often, the older the house is, the higher its insurance cost.
Remodeling
If you remodeled your house or made an improvement on any part of it like the bathroom or kitchen, make sure to take these into account. These could increase your premium, but it also means that your coverage is updated.
Location
The rate of your insurance can go higher or lower depending on your location. Is your house nearby fire station? Do you live in an area that’s known to have extreme weather like earthquakes, tornadoes, and hurricanes? Do you have a theft-prone neighborhood? These things can change your home insurance premium.
Attractive nuisances
Pools and trampolines are fun to have, but these could mean a higher premium. People who got injured while using these, with or without your permission, could be your liability. For your protection, secure your pool with fences, use self-locking gates, and have safety equipment handy. Lessen the chances of injury by using nets around your trampoline too.
Security devices
Houses with protective devices like fire extinguishers, smoke detectors, sprinkler systems, burglar alarm systems, and deadbolt lock have lower home insurance rate.
Dogs
Insurance companies offer limited, or no coverage to dog owners whose pet’s breed is perceived as aggressive. Based on statistics, over 50% of dog bite incidents happen inside the owner’s property. This also accounts 1/3 of the home insurance claims.
Personal factors
Your lifestyle is another factor that insurance providers take into consideration. For example, the home insurance premium for smokers can be higher than that of the non-smokers. Another example is if you have a good credit history, you may get a lower insurance rate.
Claims history
Those who have a history of home insurance policy claims may pay higher home insurance rate because they are perceived to have a higher risk. Other than having a higher premium, the insurance company could also drop or not renew the policy.
