Top 10 Things You Probably Didn’t Know Could Affect Your Home Insurance Rate
Did you know that your home owner’s insurance rates can go up or down? There are a lot of things that can affect these rates, and knowing what changes to your home or life can cause your rates to go up will help you save on your insurance. On top of that, there are some changes you can make to lower your insurance bill.
A Dip in the Pool Can Cause a Spike in Your Rates
If you are planning to add a pool to your home, consider the ramifications. This will increase your insurance premiums. Because of the added risk that a pool includes, insurance companies need to cover the added possibility of injury or death. This translates into higher rates for you. Especially in cases where children are involved in the home with a pool, rates increase as their risk of drowning is much higher than an adult.
Higher Deductible Equals Lower Premiums
Do you want to pay less each month? If so, think about increasing your deductible. If something happens, you will have to pay more out-of-pocket, however this will keep your monthly insurance rates low. You have to weigh out the risk in comparison to the reward.
Stay Safe and Lower Your Rates
Getting a security system is never a bad idea. Even the simple act of having one can save you peace of mind. On top of that, it can save you money. Most insurance companies will lower your rates if you have a security system that is installed and active. This is because many security systems have a button to call the police or fire station immediately if an accident or disaster happens.
Where You Live Changes Your Price
If you check homeowners insurance rates by state, you will see that where you live with affect your rates. States with more natural disasters than others will have higher rates, as the likelihood of a problem is much higher. Additionally, the closer you live to a fire station, the lower your rates will be. These may not be factors that you think of when buying a home but maybe they should be. This could save you thousands of dollars in a lifetime which could be put to use other ways.
The Material of Your Home Makes a Difference
Is your home made of brick or wood? A brick house is going to have a lower premium, because it is less likely to start on fire. Brick is also more resistant to other disasters such as mudslides and hurricanes. Also, if your home is in a flood zone in an area known for rate, this can have a large impact on your rates. Tornado areas can also be a big risk as those storms are more unpredictable than a hurricane.
Bundle to Save on Your Rate
If you get your homeowners insurance through the same company as your car insurance, most companies will give you a discount. This way, no matter what claim you need to make, when you bundle you always go to the same company. This makes things easier when things may happen on any front.
Don’t Jump Around From Company to Company
Stick with one insurance company as long as possible. History with an insurance company is important; the longer you are with them, the more likely they are to give you discounts. You can lock in at a specific price if you sign with a company long enough and this will help you save money in the long run.
Renters May Raise the Rate
Depending on your policy, your rates may go up if you have someone renting a room. Check with your insurance company; you may be able to have one or two renters before the price goes up. This is due to the company not knowing the people who are living in your home with you and the risk of more people in a house usually leads to more accidents.
Keep Your Credit Score High
Though an insurance company is not able to deny you insurance because of your credit score, they can offer you discounts for a high credit score. Keeping your credit score high can save you money on your insurance rates.
Home owner’s insurance is important for protecting your home. Make sure you have the lowest rate possible by keeping your liability low. Keep yourself safe from financial liability if a situation arises that is out of your control.
As strange as it may seem, driving record also has an impact on your homeowners insurance. This is because many times, the quality of your driving can be linked with the risk taking that you may use in your everyday life.