Archive for May, 2014

Things That Can Affect your Home Insurance Premiums

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There are a number of factors related to your home that affect your ability to secure coverage and they extent of the coverage that you can secure. These are things that you should consider when you’re planning to purchase a home or are in the hunt for a home.

An area that is prone to natural disasters, can make it difficult to secure coverage. According to, natural disasters have become so costly that many large insurers now refuse to provide homeowners with coverage for homes in high-risk areas. So, if you live in an area that has a regular wildfire season, or hurricanes, or seasonal flooding, then you may fall into this particular category.

Believe it or not, your roof can be a major issue if it does not meet certain standards. Is it wind or hail resistant? If the roof is new and it’s constructed of impact-resistant material, you may even get some discounts. Plumbing is another area of concern. Since water is one of the main causes of damage to homes, the idea of an old pipe rusting away or bursting would certainly cause one concern or a provider to question whether coverage would be available. And don’t forget, with water damage, comes mold damage. This could turn into a very expensive proposition.

The electrical system is another area where insurance providers may draw a line in the sand regarding your coverage. Circuit breakers and panels have to meet existing codes. And if you happen to be interested in a heritage home, beware of knob and tube units…they will need to be replaced. Generally speaking, the older your home is, the higher your premium will be.

Proximity to a fire department is also a consideration, for obvious reasons. And your deductible affects your insurance premium. The more financial responsibility you, the homeowner, are willing to accept in terms of a higher deductible, the more the insurance company will be willing to reward you with lower rates.

Too many claims on your policy will negatively impact your insurance cost. Before making a claim, be sure that the premium impact is worth the return. People make unwise decisions when they choose to make claims for only a couple hundred dollars.

And finally, the security of the home will impact your home insurance premiums. A burglar or fire alarm that automatically generates a call to a security company or fire station can mean a discount on your premium. If it’s in a gated community or in one with its own security measures, additional discounts may be available.