5 Factors That Can Affect
Homeowners Insurance Premiums
As an insurance agent, it’s imperative to review our client’s insurance coverage on a regular basis. This helps to ensure that their current coverage is up to date with the approximate costs of repairing or rebuilding their home or replacing its contents. While this could lead to higher premiums, it helps them to be more adequately insured and less vulnerable to high out-of-pocket expenses.
Read on to learn five factors that can affect your insurance premiums and how you can find the right coverage.
1. Home RemodelingHome renovations and remodeling are an undeniably exciting time. But homeowners often get wrapped up in the excitement of their home projects that they forget that remodeling can affect their homeowners insurance rates.
If you are remodeling one or more rooms in your home or tackling any projects that will increase the value of your home, it’s important to talk to your agent about adjusting your coverage. While materials and construction costs may increase premiums, at least your coverage will be up to date.
2. Pools, Trampolines, and Other Fun Things
Pools and trampolines are known in the insurance industry as attractive nuisances. While a homeowner may love relaxing by the pool while their kids have fun jumping on the trampoline, these items can cause insurance premiums to increase.
If you have added a pool, a trampoline, or something of the same nature, be sure to discuss with your insurance advisor how adjusting your coverage can benefit you. Many homeowners fail to realize that they may be liable if someone is injured while using their pool or trampoline, whether or not they gave that person permission.
3. Home SecurityNext time you’re discussing coverage with your independent agent, consider asking them about your home’s current security. Do you rely on old locks or do you have a more sophisticated monitoring system? Homeowners who have antiquated forms of home security are at an increased risk for a home invasion that results in a loss, increasing their insurance premium as a result. On the other hand, homeowners with a modern home security system may benefit from reduced premiums.
4. Working From HomeMore and more people are working remote jobs, some operating entire businesses out of their home. If, however, you do work from home, you may need additional coverage for possessions like business vehicles, electronics, equipment, and inventory. Additional liability coverage is also necessary as customers will be on the premises. For homeowners who run their business out of their home, consider speaking with your insurance advisor about adding an endorsement to your homeowners policy or inquire about purchasing a business owners policy.
5. The Age of the HomeAs your home and roof age, they become susceptible to damage from the elements or internal deterioration. It’s important for homeowners to keep in mind that as replacement costs increase over time, their insurance policy will need to be adjusted.
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