It’s a reasonable question. Will the cost of my house determine the cost of my homeowners insurance policy? The answer is, it’s complicated. So many factors go into how much you will pay for home insurance. Among the selling value, the other factors agents consider when they calculate your premium is:
When was your home built?
The newer the house, the cheaper the homeowners insurance policy.
What condition is the roof right now?
When was the last time the roof was repaired or worked on for basic maintenance? The answer to that question will affect your premium.
Is the home up to current building codes or regulations?
Insurance companies can help with the cost of bringing a damaged or old home up to modern building code requirements, but it’s going to cost you. The safety of your home is also considered in the premium calculation, agents consider the plumbing, the electric, and overall soundness of your home’s structure.
Does your home feature some desirable features?
Does your home have features like a swimming pool, hot tub, or workshop space? Some features that will affect a home’s marketing value. There are specific repairs and maintenance that make home insurance pricier. Items such as pools or saunas also add to the possible liability risks that a homeowner will take on.
With these four factors in mind, you can be better prepared for the sticker shock you might receive from your homeowners insurance policy price. There are some questions you should ask yourself before you meet with your insurance agent. The questions dove-tail with the factors that an agent needs to consider.
How much would it cost to rebuild your house today?
If you had to start from scratch tomorrow, how much money would be necessary to get your home back into livable status? An agent can bring their expertise to the table, but you need to do a little research before you even walk into the office.
What natural disasters or location risks need to be considered?
Are you in a flood plain? Do the local woods catch fire every year? All these risks will affect your coverage, and in turn, the price of your premium.
What is the value of your personal property for your homeowners insurance policy?
The cost of rebuilding and the initial price of your home are just the tip of the iceberg for your homeowners insurance cost. Your thousands of dollars of furniture or the pricey wardrobe you use to meet with clients are factored in some home insurance policies. It’s easy to forget that valuable collectibles or artwork lend to your home’s charm and an insurance agent takes those needs into account.
Are there any possible legal issues that could cost you your home?
Life is complicated and a homeowner insurance policy is something that can be extremely useful in the event those complications take aim at your wallet. What happens if your neighbor falls on the sidewalk outside your home and sues you for injuries? Homeowners insurance can help you prepare for altercations and fight against fluke accidents that may or may not have been your fault, it will raise the premium though.
Get homeowners insurance policy help with Hosto Financial & Insurance Services
All of these areas affect the price of your premium. The cost of your home is determined by these other factors and circumstances. A good agent will help you navigate what is the best solution for your situation. Don’t be afraid to shop around every few years and make sure your agent is working with you to get the best discounts and coverage for your current home and property. A little proactivity goes a long way regarding purchasing homeowners insurance.
If you are seeking advice about getting home insurance, give us a call at (618) 779-5808.
Does the location of your home determine your homeowners insurance cost? Read more here.