Purchasing a home is typically one of the most significant investments a person will make. Therefore, it is important to help protect that investment. Homeowners insurance is a way to provide security against disaster. There are no guarantees in life so planning for the unexpected is always a good idea. There are a few overlooked factors that can impact the cost of homeowners insurance. Understanding these influences can help one make a more informed decision on their insurance needs. There are several factors influencing the cost of coverage that people may not even know.
Dogs
The family pet is like a beloved member of the family. Man’s best friend can have a significant impact of the cost of homeowners insurance. The reality is that dog bites occur frequently and are costly. As a result some breeds that are considered to be a high risk can lead to denial of insurance, or a significant boost in the premium. Doberman’s, Rottweiler’s, and Pit bulls tend to cause the most significant obstacles to getting homeowners insurance. These breeds generally are most commonly associated with significant attacks and bites. The bad dog list can also vary depending on the area so it is important to consult the list before making decisions about pets. Just because a dog is not on the high risk list does not mean that it will not impact the cost of insurance. All dogs have the ability to attack and thus insurance companies will consider them when writing a policy. However, possessing a high risk breed is going to insure that the homeowner will pay for it through premiums, or not be able to gain coverage at all. It is also not uncommon for insurance to exclude dogs in a policy. The single biggest claims against homeowners insurance generally results from dog bites. As a result companies will protect themselves against the increased risk through higher premiums.
Previous Claims on the home
Previous claims on a house will be factored into the cost of homeowners insurance. There are situations where a person could be denied coverage based on these claims. It is important to know what, if any previous claims a home has had before making a purchase. For a small fee a potential buyer can get a loss history report from A-Plus or Clue. These databases provide history about a person or a locations claim history. Having a home’s history will prevent a homeowner from getting unexpected surprises when it’s time to look for insurance. It is also worth noting that it is not in a homeowner’s best interest to not make a claim for every little issue that arises. Sometimes it is better to absorb the cost rather than risk long term negative impact to one’s homeowner coverage for excessive claims. This is especially true if repairs are just a few hundred dollars.
Fire Station
The distance between a home and a fire station has a significant impact on the cost of homeowners insurance. Clearly, the further from a fire station a home is the more likely extensive damage will result in the event of a fire. As a result the further the home is away from the fire station, generally the higher the cost. People that live in urban areas will often pay less for homeowners insurance than those who live in rural areas. Hydrants close by will also impact the cost of insurance even if the home is relatively close to a fire station. The closer the water source is to a home the cheaper the rate. A combination of a close fire station, as well as a hydrant close by is the best situation for a homeowner.
Alarm System
An alarm system is a good way to not only protect ones property but lower insurance premiums as well. The cost associated with installing a system will often be offset by lower premiums. Generally the better the security system is the better the discounts offered. A good alarm system should include not only burglar alarms but fire as well. In addition to the lower premium a good alarm system can help save life and property.
It is a good idea to consider the costs associated with homeowners insurance when shopping for a home. The less risk the home is exposed to the cheaper rates are. Therefore, it is important for buyers to not only consider a history, but ways to mitigate risk when purchasing a home. Homeowners insurance offers protection against the unexpected and understanding and mitigating risk will make that protection less expensive.