What are the Main Factors that Increase my Home Insurance Premiums?

We all know how important Round Rock home insurance is in giving you financial security and peace of mind, especially if you're at risk of experiencing a flood, fire, or any other number of natural disasters. Equally important, however, is the cost of home insurance coverage, something which is affected by a range of different factors. In order to achieve the lowest premium possible, it's important to know as much as you can about these factors and how you can manipulate them.

First off, your location is of paramount importance in determining your premiums. Some areas that are prone to natural disasters like tornadoes and flooding, for example, will naturally lead to higher premiums because the risk of damage is inherently higher. If you are searching for a new property, taking this factor into account is important.

Another factor to consider is the property's plumbing. Plumbing that has been upgraded in the last 20 years will generally lead to cheaper premiums, while archaic plumbing systems will generally present a greater risk of burst pipes, blockages, and other issues that will require action. Water problems can also lead to mold, which can be extremely expensive to remediate. This usually makes insurers fairly wary. 

The electrical system can present a similar problem. If your electrical system doesn't meet current code, you may be charged higher rates. Generally, this means that your system should have circuit breakers rather than fuses. As long as your home is a relatively new build you should be fine, but older systems that haven't been upgraded within the last 25 years will be susceptible to higher premiums. 

Another relevant factor is how far away your home is from the local fire station. This may not be something that you generally think about when buying a property, but it is important. If your home is located 5 miles or more from the nearest station, this will lead to increased rates, which may jump by between 20% and 240%, depending on the distance.

The age of your home, how well it has been maintained, and how secure it is from burglary, will also be important. Insurers love new properties with brand new features and lower replacement costs than older, outdated properties. Cosmetic flaws, and lack of 'pride of ownership' will actually be counted against you as well, with unkempt lawns, peeling paint, cracked windows, and such things contributing to the image of a poorly maintained property. Updated security and safety features – at least burglar, fire, and smoke alarms - will also be important in limiting risk, and therefore premiums rates.

There are a host of other factors that will also contribute to higher home insurance rates. To find out more about these, get in touch with Contractors Insurance Services by calling 512-518-6292.