From wood-burning stoves to waterfront property, many factors influence the price of a homeowner’s premium. One article simply can’t cover them all, so we’ll explore the topic more in Part II.
Things Your Insurer Should Know About Your Home:
- Whether You Own Wood-Burning Stoves
- Despite their benefits, wood-burning stoves tend to increase premiums. You can potentially counteract premium increases by providing your insurance company with proof of your stove being installed by a licensed contractor and meeting code requirements. In addition, you can possibly prevent damages and reduce premiums by installing smoke detectors in your house.
- Whether You Run A Home-Based Business
- Insurance companies don’t typically cover working from home under homeowners insurance. If you have a home business, consider adding an endorsement to your homeowners policy or purchasing a business owners policy.
- If You Have Any Previous Claims
- Insurance companies need to preview your claims history to determine how high of a perceived risk you are. Generally, having higher risk associated with an aspect of the home can lead to higher premiums. (i.e., owning a pool or trampoline that can lead to injury.)
- Insurance score and credit history are also taken into account by insurers.
- The Replacement Cost of Your Home
- The replacement cost of a home differs from the home’s market value. Industry experts say that under-insuring a home is the biggest mistake some homeowners make. Hiring a professional appraiser, which can cost $200-400, can save homeowners a considerable amount of money in the future.
- The Marital Status of Those Residing There
- Insurance companies tend to look favorably upon married couples, since historically, they tend to make fewer claims than single people.
- The Roof’s Condition
- Of course, insurance companies tend to favor new roofs over old ones. Old ones are more susceptible to damage by wind or hail. If you replace an old roof, talk to your insurance agent about reducing your premiums.
- How Close Your Home Is To A Body of Water
- The nearer homes are to water, the more expensive they are to insure. Home owners may even need to invest separately in deductibles for hurricanes or flood insurance.
These are only a few factors to keep in mind when speaking to your insurer. Of course, in the end, the best course of action is to speak with your insurance agent about premiums so they can let you know about the best options available.