The following factors will have an influence on the home insurance price you will have to pay when purchasing.
The Condition of the Home
Insurers will take account of general wear and tear on your home when setting a premium. They will inspect the premises to check significant items including the condition of the roof, porches, decks, and the integrity of the electrical wiring system. As new homes tend to be in better condition than older homes some insurers will offer up to a 15% discount if your home is newly or recently built.
The Construction of the Home
Certain types of homes are less expensive to insure because of the materials used to build them. For example, a home of brick or concrete construction is usually more damage resistant than a timber frame house.
Many insurers also offer discounts of approximately 5% if your home incorporates safety features such as burglar alarm systems, deadbolts, window locks, smoke detectors, and sprinklers. You may also receive a discount in home insurance price if your home is in close proximity to a fire department station house.
If There is a Smoker in the Home
Because smoking in the home greatly increases the risk of fire, some insurers will offer a discount of approximately 2-5 % if no one in the home smoke.
Is the Home in a High Risk Area
Flood and earthquake damage is not covered by standard home insurance policies. Special supplemental catastrophe policies that cover these events are available, but can be quite costly. If you are currently covered against catastrophes through a government plan research coverage through a private insurer. It may actually be cheaper.
Type and Amount of Home Insurance Coverage Needed
Homeowner’s insurance typically covers damage to your home or loss of contents. Some packages also provide further benefits such as personal liability coverage to protect against claims in the event someone is injured on your property. Make sure the policy you buy meets your requirements and always read the fine print for exclusions and other conditions. Prices and protection can vary significantly between packages that appear to be very similar. You need to get the balance right.
Your Affordable Deductible
The deductible is the amount that you the policyholder must pay before your insurance company starts paying out against any claim. The higher your deductible, the lower your home insurance premiums. By raising the deductible, you can save up to 50% of the cost of your homeowner’s insurance. Remember though, if for example your deductible is $500, any loss or damage to your property that falls within that sum is yours alone to pay and not just one time. If you suffer a loss through damage of $300 in January and then another of $450 in May they would generally both fall within the deductible, your insurer will have nothing to pay.
Loyalty to Your Insurance Company
Insurers will often reduce their rates if you buy more than one type of coverage from them; for example both auto and homeowner’s insurance, or if you stay with them over a substantial period of time.
Is There a Retiree Living in the Home?
If you are over the age of 55 and retired, check with your insurer to see if you qualify for a discount. Most insurance companies offer discounts to retirees because they tend to spend more time at home which means it is more likely they will be present and able to deal quickly with emergencies such as fire. Being at home in the daytime also means they are less likely to be burgled, and they generally have more time to maintain their homes. Some insurance companies will offer discounts to home insurance price of up to 10 percent to seniors who qualify.
You can often obtain better home insurance rates if you join a group plan through an employer, alumni association, veterans group or other organisation. Check to see if any affiliate body of which you might be a member of has a group plan with an insurance provider.