Four Factors Affecting Homeowners Coverage You May Not Know
Perhaps you think you have researched homeowner’s insurance well enough. You might be right; however, here are a few things you should be aware before you chose your insurance company.
Dogs
Insurances companies vary in degree as of willingness to provide coverage for dog owners. There are companies which exclude dog –inflicted injuries. Some even refuse to sell insurance for dog owners whose dogs have a reputation for biting, like pit bulls, Chow-Chows, Akitas and Rottweilers. There are companies who charge extra cost or don’t even give liability charge for dogs like German shepherds, Siberian huskies, Alaskan malamutes, Doberman Pinschers, American pit bull terriers and their cousins. In the worst cases, there are companies that do not sell coverage for those who own any kind of dog.
Previous Claims on the Home
Are they denying you a home insurance? How is that possible? If previous claims have been made by the previous owner on the house, insurance companies might refuse of giving you insurance. If the insurance company finds that there is a pre-existing problem or there have been claims made on the house because of fire or other damages, they might not give you a policy. Despite home inspections, this can actually happen. But this isn’t the sole problem. If you have a history of claims, it is going to cost you too. However, you are well aware about this. But when past claims made by previous owners hunt you, it is a different scenario. Imagine, you have sorted out everything, found the right home, the house of your dreams then, before everything would be done, they tell you, you cannot have insurance on the home. However, your insurer knows and has access to information regarding all claims made by the owners for the past seven years. There are two databases, C.L.U.E (Comprehensive Loss Underwriting Exchange) and A-PLUS (Automated Property Loss Underwriting System) are available to them. The insurer finds out whether you, the buyer, and the seller had any history of claims within the past seven years. Not only insurance companies but homeowners can request a C.L.U.E; potential buyers cannot, however they are entitled to ask their insurer’s to provide them with a copy. On the other hand, it is flattering when the seller has a report at hand, making the potential buyer more comfortable with his decision.
Fire Stations – Distance Affects Coverage
There are some states, like California, where the insurance companies rate the homeowner’s insurance according whether fire stations are within a five mile radius or not. However, this is not enough. Insurance companies place the rate of the policies on a scale of 1-10. The lower one stands on the scale, the less one has to pay for insurance, but to achieve this a fire station has to be located within five miles of the home, and it has to be rated and qualified by ISO. According to some sources, if the insured lives within five miles of the fire station or within 1000 feet of a fire hydrant, then one can slip into a protection class of one to three.
Alarm Systems – Discounts
You should also consider easy ways of reducing home insurance, for example, putting deadbolts at all main doors. It is simple, and it can give you five percent discount on your insurance premium. Depending on the type of alarm system you might invest in, an additional five to twenty percent discount can be given. If you are willing to invest in a more sophisticated alarm system, it will pay off in the long run. To prevent burglars entering your home, you might consider shatterproof windows. It is not an alarm system, but it can keep out unwanted strangers. Motion-sensitive illumination is another way for you to reduce your premium by another five percent. It is keen on stopping burglars in their tracks, since illumination can attract too much unwanted attention. Another way of keeping out intruders is burglar bars. It might not be a fancy you’d wish to have, but it is very useful and provides physical security.
This article is structured around some facts we all should be familiar with and to help us out, since we are thoughtful and considerate customers who want the best insurance, a customized coverage, to fulfill our needs.