Determining Homeowners Insurance Premiums: Four Factors That May Be Out Of Your Control

Determining Homeowners Insurance Premiums: Four Factors That May Be Out Of Your Control.When calculating your homeowners’ insurance premiums, insurers consider things like age of the house, luxury items, and safety features. Some of these are things you can control, but others may be more difficult to manage. Here are four essential features that you may have little control over:

Distance from Emergency Services

However much you maintain and protect your home, there is still a chance that some damage may occur. The insurance company wants to be reassured that, in case such a risk occurs, then immediate measures will be taken to mitigate the damages.

For example, if it is a fire outbreak, then the fire department should arrive in time to put it out before it causes extensive damage. Therefore, if you live far from emergency services, then you may have to pay higher premiums to cover the corresponding risk.

Size of the Home

A bigger house costs more to insure because it will require more funds to repair in terms of damage. Secondly, bigger houses tend to have more contents, which mean higher potential replacement money. There may be a way out of this situation if your home is comprised of several because you may pull down some unused structures. However, if it is one big building, then there is nothing you can do about it.

Neighborhood

When calculating your premiums, the insurance company will not just consider your house, but also the neighborhood in which it stands. For example, it may increase your premiums if your area has recently experienced things like increased:

Fire outbreaks

Burglaries

Number of homeowners’ insurance claims

Tornadoes

These things send a signal to your insurer that your neighborhood is not safe, and that your house faces an increased risk of getting damaged or broken into.

Age

Lastly, you should also expect to pay more to insure an older home as compared to a relatively new one. There are several reasons for this; for example, older homes:

Are likely to have more degraded materials that increase the potential for damage in case of a problem like a falling tree.

Tend to have architectural designs and materials that are costly to replace or repair.

May not have been designed or built with the new safety features demanded by new building codes.

Even if you cannot control these factors, there may be other things you can do to reduce your insurance premiums. For example, different insurers handle these issues differently. Some may place more emphasis on the age of the house than others. Therefore, comparing quotes from several carriers may help you get a reasonable one. Contact local insurance agencies and brokers for more information.