We discussed how to lower your home insurance premiums in our last session using technologies that are unknown to many. Today, we will be discussing five (5) factors that determine home insurance rates.
Your home insurance premiums may increase due to a number of factors. However, customers can shop online and combine their plans to reduce their expenses.
You might be able to save several hundred dollars a year by comparing insurance rates from several providers.
What leads to an increase in insurance rates?
Your neighborhood’s environment may change over time, putting you at greater danger of earthquakes, wildfires, and flooding. The shutdown of a fire department can also be a concern if you reside in a remote location.
Rates may also rise as a result of modifications to your credit score and the age of your house.
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These five factors can have an impact on your home insurance premiums.
- Older homes
- Home improvements
- Rural areas
- Natural disasters
- Credit score changes
These 5 factors determine home insurance rates
Older homes
Due to the necessity for repairs and the fact that some older homes may not have the most recent safety and security systems, Leslie Tayne said older properties are normally more expensive to insure than newer ones.
Home improvements
Your home insurance may increase if you’ve built a pool, an extra room, or an outside kitchen because there may be more incidents or guests now.
Rural areas
The amount of time it would take firefighters to arrive at your property if you live in the country can be a significant concern, especially if one just closed.
For Money Management International, a non-profit debt counseling company with offices in Sugar Land, Texas, Jackie Boies, senior director of housing and bankruptcy services, noted that living in a rural location and being close to a fire hydrant or volunteer fire brigade makes a difference.
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Natural disasters
Your premium can go up if your region has recently had multiple major flood events, hurricanes, or wildfires.
“Homes in locations with severe weather, such as earthquakes, tornadoes, and hurricanes, as well as homes near the shore in flood zones, ones with pools, or ones with trampolines as well, tend to have higher rates,” said Leslie Tayne, a Melville, New York, attorney who specializes in debt relief.
Read: Insurance Premium – What Happens If I Stop Paying?
Credit score changes
According to Tayne, your insurance score is similar to your credit score and can have an impact on your home insurance price.
“When underwriting an insurance policy, insurance firms frequently analyze an individual’s number of credit inquiries and accounts, listed bankruptcies or collection activity, and payment history,” she noted.
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