If you're currently looking into home insurance, you may be wondering which factors play into the overall price of your insurance premiums. Unfortunately, there are some things that are out of your control that can make your insurance cost more money. Here are four things to keep in mind when shopping around for an insurance policy on your home.
The Home's Age
Insurance companies will look at the age of a home when determining how to ensure it. Potential problems that are considered revolve around older electrical systems and plumbing that could cause fire or water damage if they were to break. Materials can also have more wear from years of use, which make things more likely to become damaged and break. For instance, having an older roof makes your home more likely to have a roof leak.
The Attractive Nuisances
If you are buying a home because you really love that it has a pool in the backyard, realize that you and your insurance company view it in different ways. While you see it as a fun way to spend time with the family, insurance companies see a pool as an attractive nuisance. This means that it poses a risk because people can get injured while using the pool, which will lead to an insurance claim. Kids in the neighborhood may try to use the pool unsupervised, which will hold you responsible if they get injured. It's not easy to get rid of a big swimming pool in a yard, so you will have to live with the increased premiums as a result.
The Use of the Home
Are you buying a second home to use for vacations? If so, be aware that insurance companies view vacation homes as a higher risk than primary homes. This is because vacation homes are not occupied during the year on most days, and problems will be harder to detect. For instance, leaking pipes can cause a lot of damage if left alone, and thieves may be more likely to break into a home if they know that nobody is living there.
Living in an area that is more prone to disasters will increase premiums. This is most common with living in a flood zone, which has the chance of nearby water causing damage if the water level increases too much.
If you have questions about the price you are paying for insurance, speak with an insurance agent at an agency like ALTRE Insurance Agency Inc for more information.