Factors That Can Affect Affordability of Home Insurance Premium

What contributes to the homeowner’s insurance premium costs?

There are a number of factors which influence overall affordability home insurance rates. Aspects like home type, roof age, swimming pool, etc. can have impact on the premium. Here is a list of few parameters which can affect insurance rates for homeowner’s insurance.

  • Home Improvements -Home renovations and even changes in homes can impact insurance premiums. It is needless to say that home improvements raise home values but these need to be reflected in insurance policies so that you can prevent out-of-pocket expenses that are likely to be incurred post natural disaster or accident.
  • Attractive Nuisances-Things like swimming pools, backyard fun, trampolines and diving boards in homes can lead to hike in home insurance premiums. Insurers perceive greater degree of risks as likelihood of accidents are high.
  • How old is your house -Once homes start ageing, they are more prone to damages caused by extreme weather conditions or natural disasters. Repair and replacements costs of roofs or windows can be expensive and this may result companies charging higher premiums.
  • Type of heating source-There will be a significant hike in home insurance premium if there is a wood furnace or burning stove in your house. This is because wood-burning furnace can cause fire in your home and that increases insurers’ coverage risk.
  • Location of work place - If you are working or doing business at a place that is far away from your house then insurers are likely to reward you by charging lower premiums.

Homeowners Insurance will help you to save money in the long run

  • Keeping home safe & secure-Installation of security systems in homes can decrease coverage risks faced by insurers as they can ensure safety of your house. As a result, premiums charged will be low.
  • Pets-Certain pet dog breeds in homes like Rottweilers and Pit bulls are aggressive and so, are considered to be dangerous. So, premiums charged for homeowner’s insurance can go up.
  • Previous claims history-Insurers also review homeowner’s past claims history so, if you have previously filed numerous claims, you can expect the premium to be high.

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Reasons To Switch Homeowners Insurance To A New Insurer

    There could be varied reasons for which you might want to consider switching to a new homeowner insurance provider. Insuring homes at a price that is affordable and sustainable can be a tricky task as you need to make sure that the coverage which you buy is adequate to grant financial protection against any eventuality. Remember, condition of homes can deteriorate because of natural disasters, fire, theft, vandalism, etc. And house repairs or replacement of certain materials can be highly expensive.

    To that effect, if you are dissatisfied with the contents of your existing home insurance policy then you can think of switching over to a new insurer. There are certain factors which may prompt you to work with a new insurer as under:

  • Lowest premium pricing - With advancement in online shopping technology, it is now possible to locate companies which provide the best and the cheapest coverage for homes.
  • Changing coverage needs - If you have got your home renovated recently then it could be vital for you to get coverage needs updated. In such circumstances, you can even look to what other insurers have to offer other than your current home insurance company.
  • Bundling multiple policies - Most of the companies may extend special multi-policy discount on premium if you bundle car and home insurance policies. Determine how much you can save by bundling home and auto insurance without compromising on your coverage needs
  • Get better client experience - If you have previously filed claim with current insurer and you had a bad experience with the company’s customer relationship services then you may consider shifting to a new insurer. The level of claims settlement assistance can have a long standing impact on client’s opinion regarding companies. When homes get damaged, the last thing that homeowners would want to expect is poor quality services.
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