Three Factors That Can Impact Your Homeowner' s Insurance

Posted on: 8 September 2017

Insurance companies look at a variety of factors when determining your homeowner's insurance premiums, and there are some things you can do that might impact your rates. Certain changes to your home can cause your rates to go up, while others may help them to go down. Here is a look at some factors that can affect your homeowner's insurance rates:

Home Security Systems

By adding security cameras, an alarm system, or other home security features, you can make your home better protected against potential theft or vandalism. Your insurance company might see your home as less of a risk to insure if you add a home security system or other security equipment to your property. Of course, other factors play into the premium, such as crime in your area. Talk to your insurance agent before you install security equipment so you can see how much of an impact it might have on your insurance rates.

Attractive Nuisances

Attractive nuisances are additions to your home or property that might be inviting to children, but can also be dangerous under the right circumstances. These might include swimming pools, trampolines, fire pits, or even exotic pets. The potential for injury can cause your insurance carrier to see your home as a greater risk for liability claims. If you are considering installing a pool or adding a trampoline to your backyard, check to see how much they might raise your premium. In some cases, you may be able to mitigate the additional cost by adding certain safety features, such as locking gates and audible alarms. Your homeowner's insurance agent can provide you with guidance about how to handle attractive nuisances, and he or she may also be able to provide you with a list of everything your carrier categorizes as a nuisance.

Home Remodeling And Renovations

Home remodeling and renovations can cause your rates to go up or down, depending on what type of work you have done and how much value it adds to your home. Your insurance is partially based on the value of your property, and adding a new kitchen, bathroom, or home addition can cause the value of your home to increase. However, replacing a badly damaged roof might actually lower the cost of your premiums, as the home might be safer from potential water or storm damage. Talk to your insurance agent before completing any renovations to see how they might impact your premiums.

Before you make any major decisions about additions or renovations to your property, consider their potential effect on your insurance premiums. If you do make any major changes, you'll want to let your insurance agent know so you have the coverage you need in the event of an accident, theft, or other event.

Contact a company like Mid-Alliance Insurance Associates LLC for more information and assistance.