5 Factors that Can Raise Your Homeowners’ Insurance Premiums

howners insurance

If you are planning to buy a new house, there are a lot of things that you should consider, apart from its location, aesthetic value and price tag. Do you know how much money you would have to spend on insurance premiums? Most importantly, are you able to identify the main drawbacks that would inevitably inflate the price of your coverage? Below you will find 5 of the most surprising factors that can make your insurance rates skyrocket.

Some of them can be easily avoided. Also, keep in mind that, if you do not have a solid homeowners’ insurance background and you can’t weigh the pros and cons of different types of coverage in your price range, it is always better to discuss your options with a knowledgeable friend, a broker or a lawyer. In case you want to save as much time as possible and spot the most incredible deals in record time, all you have to do is compare homeowners’ insurance rates by zip code with Insurance Depot Quote.

Here are a few elements that can and will make you take more money out of your own pockets for your monthly premiums:

1)      An Outdated Electrical System

Before buying a new house, call a certified electrician and ask him to inspect its electrical system. Is in new or at least in excellent condition? Most importantly, does it comply with current codes? If the system was implemented or improved more than 25 years ago, this means that it should probably be replaced. New systems are based on circuit breakers, while old ones comprise fuses. An outdated system will force you to pay higher insurance rates and can also put your safety on the line, by triggering a devastating home fire.

2)      A Faulty Plumbing System

A faulty plumbing system is the main cause of water leaks that could destroy some of your most valuable belongings and lead to a potential mold contamination. Check the joints and pipes before deciding to purchase a new property. Old, rusty, cracked ones should be replaced in a timely fashion.

3)      Lack of Preventive Measures

In some cases, lack of preventive measures can burn deep holes in your pockets, especially if you have a homeowners’ insurance policy with a high deductible. This doesn’t mean that you have to spend a few hours on a daily basis inspecting your premises or dusting and cleaning. It just means that every once in a while you have to pay attention to key areas (attic, basement) and key components or systems (plumbing system, electrical system) that are usually associated with some of the most common threats causing injuries and property loss (fires, floods and so on). To avoid worst case scenarios turned into reality and save more money on insurance premiums, follow a few simple steps:

a)      Inspect your roof every 6 months to be able to identify the first signs of wear and tear as soon as possible

b)      Keep your pipes in excellent condition, especially during winter, to avoid flooding and prevent bursting

c)      Replace defective rubber hoses connected to your dishwasher or washing machine, to avoid major water damage. You can also choose to purchase and install reinforced hoses, which are sold in most home improvement stores

d)      If you live in a fire-prone materials, try to limit the amount of extremely flammable materials that you keep around the house and also clear woodpiles, trees and underbrush to minimize fire risks

e)      Take pictures of your most valuable belongings. This is a simple, extremely important measure of precaution that most people tend to neglect. Your decision to videotape or photograph your goods can support your future claims and serve as essential evidence. Make sure you keep these records in a safe spot.


4)      Small Claims

We all know just how tempting it actually is to file a claim as soon as you suffer a minor loss or spot the tiniest sign of wear and tear on your fence. This is actually a very counterproductive tactic. Don’t make your insurance company pay for a broken window or a destroyed fence. Submitting small claims doesn’t make much sense, from a financial standpoint, especially if you have a policy with a huge deductible. Let’s say that your deductible is $1,000.

You need to fix your fence, and repairs would cost you approximately 1,200 dollars. If you were to report the loss and ask your insurer to cover your prejudice, he would only put 200 dollars on the table and you would have to come up with the rest. That $200, a rather negligible amount of money, would make insurers catalog you as a potential liability. It’s no secret that insurance companies hate it when you file a claim and try very hard to attract buyers who are less likely to cost them any money. So always think twice before asking your insurer to financially support your repairs, especially when small amounts of cash are at stake.

5)      An Old, Poorly Designed Roof

How sturdy is your roof? Would it beable to withstand extreme weather conditions or could it be wiped off the face of the earth by a moderate storm? It is imperative to inspect your roof at least once or twice on a yearly basis, to avoid unpleasant surprises. An old, deteriorated roof can expose you to considerable water damage, lower your level of comfort at home and put your valuable assets at risk. If you live in an area that it frequently impacted by hail or powerful winds, you may want to replace your old roof with a newer one, manufactured by a first-class company using impact-resistant roofing materials. This simple, cost-effective improvement can unlock significant discounts of up to 20%.

To keep costs under control and analyze different price tags carried by various insurance policies, just compare homeowners’ insurance rates by zip code online. While surfing the web, you can get accurate quotes in a matter of a few seconds with just a few clicks.

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