11 Things Making Your Homeowners Insurance Cost More
If you own a home, you’re required to have homeowners insurance, unless you don’t have a mortgage. When you’re required to pay for something, often times you look for the cheapest way to do so. That’s why we’ve created this list of things that may be making your homeowners insurance policy cost more.
Age of the home: Older home can be more susceptible to losses due to wear and tear. Because of this, insurance companies typically have better premiums for newer homes. So, if you’re in the market for a home, maybe avoid the older ones and be sure to ask questions when buying a home.
Distance from emergency services: Houses that are closer to Fire Stations and fire hydrants receive a premium break compared to house that are out in the country and more rural areas miles away from emergency services. It’s a good idea to protect your home from fires either way.
Pets: Dogs like Pit Bulls and Rottweiler’s can be expensive to add to your insurance policy, and many companies won’t even allow them to be added. If they do bite someone, it won’t be covered if they aren’t specifically added. Its best to prevent dog bites altogether.
House size and features: Bigger homes with more expensive materials are more expensive to insure. Again, if you’re looking to purchase a home, keep this in mind if you’re trying to save on costs.
Deductible: If you, as the homeowner, decide to go with a low deductible like $500, your premium will be higher. If you have a little money set aside and can afford it, elect to have a higher deductible so you can save on premiums.
Swimming Pool and Trampoline: If you are thinking about building a swimming pool in your yard, consider that your insurance rates will increase, especially if you have a diving board or slide, and you may even be required to build a fence out of pocket as well. Having a trampoline on your property often increase your rates as well (just think of all the liability issues that could arise when neighbor kid comes over to bounce).
Insecure home: If you have a house alarm and monitored security system, this can reduce your insurance cost. If you have a system installed, it can help prevent burglaries, so definitely let your insurance company know.
Expensive valuables: Homeowners typically covers items up to a couple thousand, but if you have expensive jewelry, art, guns, etc., these things will need to be itemized and will cost more to insure if you want them protected as well.
Credit score: If you have a low credit score, companies may not give you as low of a premium as they would for someone with a high credit score. Companies find that those with higher credit scores are more responsible with their property.
Multiple buildings: If you have a shed or barn on your property, it’s likely increasing the cost of your homeowners insurance. If the building is non-essential or empty, maybe consider tearing it down.
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