What can affect the cost of homeowners insurance?

Although learning a few things about homeowners insurance may not exactly score you your next big date, spending a few minutes on the subject can wind up saving you a couple of dollars and these days, that’s a very good thing.

There are many factors that can affect the cost of homeowners insurance. Here’s a description of some of the more common factors that come to mind:

Generally, as your home gets older, the cost of insuring it may increase. Older homes have more things that can go wrong, often related to outdated wiring, older plumbing, or lead paint.

The location of your home also can affect your insurance premium. Insurers generally regard homes located in urban areas to be at a higher risk of burglary than comparable suburban homes, translating to a higher premium cost for metropolitan area houses. Insurance may cost more if your home is located in an area prone to a specific peril, such as floods, or in a rural area far from a fire station or fire hydrant.

Living in an area prone to claims for mold damage can increase your premium. In fact, excessive mold damage can be so costly to repair that some insurers either are significantly increasing premiums to insure mold damage, or they’re eliminating coverage completely.

Rising repair or construction costs in your area also will increase your insurance premium. If it’ll cost more to repair or replace your home, it’ll cost more to insure it as well.

Sometimes, you can cause your insurance rates to increase. Swings, trampolines, and other backyard equipment can add to your premium. Owning a swimming pool, sauna, or hot tub may increase your property’s value as well as the risk of injury or property damage, which will be reflected in your insurance bill.

Based on the breed and temperament of your dog, an insurer may consider it an increased risk of causing injury, resulting in a higher premium. If the breed of your dog is on the insurer’s “bad dog list,” you may not be able to get coverage for injuries caused by the dog, or your current insurance can be cancelled altogether.

How can I reduce the cost of my homeowners insurance?

While talking about homeowners insurance certainly isn’t the most interest subject I can think of, it is an important topic worth addressing. You may not have control over all of the factors that affect the cost of your homeowners insurance but there may be some things you can do to save some money, which is something on the minds of many people these days.

If your home is older, your insurer may lower your premium if you upgrade your heating, plumbing, or electrical systems to reduce the risk of fire and water damage. Let your insurer know when you’ve made these changes.

Selecting a larger deductible is another good way to lower your cost of insurance. You might want to put your premium savings in an emergency fund to pay the deductible, if needed.

Also, be sure to review your policy. You may be adding to the cost of insurance by carrying extra coverage for things that have declined in value or you no longer own, like furs or jewelry.

Swimming pools can add to the cost of insurance.However, many insurers may not increase your rates if you show them that you have safety features such as fencing or a locking gate around your pool.

Before you get a dog, check with your insurer to be sure your new pet won’t increase the cost of your insurance–or cause it to be cancelled. Also, advise your insurer that you’ve properly trained your pet and that you’ve obtained all required vaccinations and tags.

Some insurers will raise your premiums if you file frequent (more than 2-3) claims of relatively small value. Try to use your insurance for major claims and consider self-insuring the rest.

Another way to save on your insurance costs is to buy your homeowners insurance and auto insurance from the same insurer. Most companies will discount the cost of insurance if you buy two or more policies from them.

You may receive a discount from your insurer by improving your home’s security and be sure to ask your insurer if adding an anti-theft system, flood lights, or even dead-bolt locks will lower your premium.

All the above from one time another has lowered the costs in homeowners insurance. It’s worth a few minutes to call your insurance carrier and ask them about the above ideas. And if I missed something you know about, please be sure to drop me a line. After all, you might very well wind up helping myself or someone else a few dollars in fees and to me, that’s a job well done.