Homeowners have to deal with numerous expenses, but a hefty insurance premium shouldn’t be one of them. There are certain risk factors that might be affecting your policy rates. These surprising variables will drastically reduce your payments if they’re removed from the equation.
Some risk factors will cause your rates to soar, or affect your eligibility for coverage. If you’re wondering what these risk factors might be, we’ve listed them below and provided a solution you can use to reduce your rate.
You Live In An Area That’s Susceptible to Natural Disasters
Earthquakes, floods, wildfires, and mudslides pose a threat to many homeowners. But it doesn’t stop there: Homeowners exposed to these risks are faced with higher home insurance premiums. Local laws in some areas mandate that insurers provide coverage for these disasters if the area is prone. The insurers pass the buck onto the homeowners by charging an additional premium or a deductible for the specific natural disaster.
You can reduce these extra costs by ensuring that your property meets current building codes. You should also take preventative measures to ensure that your home is resistant to natural disasters.Â For instance, shatter-proof glass, storm shutters and a reinforced roof provide added protection against windstorms.
Your Home is Far From a Fire Hydrant
That picturesque cabin in the woods may appeal to your senses, but your insurance rate will skyrocket because of the location. Home insurers factor in your proximity to a fire hydrant when calculating the rate you’ll pay. To be more specific, they’ll consider distance from the fire department, fire hydrate or some other source of water.
So, while bears in your backyard might seem like paradise, your prime location will increase your insurance rates. If the location is out of your control, you can shop around and compare the costs in order to get the best deals.
Your Home is Vulnerable to Burglary
While you won’t invite a burglar to your home, lack of adequate security provides an open invitation. A home that’s not burglar proofed will not only compromise your safety, but increase your home insurance rates as well.
Your insurer will evaluate the instances of crime in your neighborhood and factor that into the costs of your insurance. Add that to a home that’s not secured from burglars, and you’ll understand why you’re forced to pay more.
Burglar alarms, fire alarms, dead-bolt locks and other protective devices will reduce your home insurance rates by as much as 5-15 percent.
You Have A Backyard Pool
Backyard entertainment is a must during the summer months, especially if you have kids. But that pool or trampoline in your backyard might be the reason for your high insurance premiums. Pools and trampolines incur an extra charge because they present an additional liability. Drowning, diving injuries, falls, and collisions form a large part of yearly claims.
In fact, some insurers will refuse coverage or exclude these items from coverage if they’re listed on your application. In such an instance, you’ll have to get coverage under an umbrella policy. To reduce to cost for coverage, install a pool fence, protective cover or both. Before you purchase a trampoline, determine if it’s the sort of entertainment you need. Chat with your insurer to see how it will affect your policy.
You Have a Canine Companion
We know you love your canine friend, but if you own certain breeds it could raise your premiums. Some banned breeds pose a risk of biting, maiming or killing household members or passers-by. Insurers process millions of dollars in dog related claims every year. To counteract this, some insurers provide a list of breeds they won’t insure. Pit bulls, Dobermans and other aggressive breeds are the ones usually excluded.