Your home insurance premium is determined by many factors, some of which you may not know about. But if lower rates are important to you, understanding what affects them can potentially help you make the necessary changes to pay less each month. Let’s take a look at 10 things that can make your house riskier to insure, therefore costing you more money.
1. Location: If your house is located in an area prone to natural disaster, such as a coastal town or a city where sinkholes are common, you can expect to pay more for coverage.
2. Crime rate: Living in an area known for having a high crime rate increases your risk of filing a claim, which can cause your rates to go up.
3. Fire safety: A close proximity to a fire station reduces the risk of your home being completely destroyed by a fire. Living farther away can increase your rates. To that note, installing smoke alarms and carbon monoxide detectors in your home can earn you a safety discount.
4. Frequency of claims: A history of making multiple claims makes you a riskier customer in the eyes of an insurer, and can cause your premiums to increase.
5. Credit score: A poor credit score can result in higher premiums because it shows that you’re a riskier investment, especially if you’ve had trouble paying your bills on time.
6. Maintenance: Leaky pipes and old water heaters can turn into bigger problems that result in claims if left unchecked. These little maintenance issues can result in higher premiums once a pattern of negligence is detected.
7. Weather preparation: If you live in an area with particular weather concerns, you can often save on home insurance if you’ve prepared, such as if you’ve reinforced your roof against hail and windstorms.
8. Trampolines: Trampoline injuries result in tens of thousands of hospital visits every year, making them a huge liability risk. Trampoline owners can expect to pay more for home insurance.
9. Swimming pool: Similar to trampolines, pools also increase your liability risk due to the chance of injury and/or drowning.
10. Dogs: Certain breeds—such as Dobermans, Pit Bulls, Akitas and more—are seen as dangerous, aggressive breeds in the eyes of insurers. Owners of these dogs may pay more for coverage.
Learn about your risks. Call McKee Insurance Agency at 850-224-6055 for more information on Tallahassee home insurance.