When you go to apply for homeowner’s insurance, the insurance company takes many different factors into account before providing you with a quote and, ultimately, the rate that they will charge you every year to maintain your coverage. In general, insurance companies a wide range of factors to determine how much risk is associated with your specific home. With that in mind, let’s take a closer look at a few of the largest variables that can affect your insurance rate.
Do you have a pool or another “attractive nuisance”?
“Attractive nuisances,” in the insurance sense, are things in and around your home that could put people at risk for injury or even death. Swimming pools are perhaps the most common example of an attractive nuisance because they increase the chances of someone getting hurt while visiting your home. Other examples of attractive nuisances that may be found around your property are trampolines, zip lines, tree houses and even dogs. In fact, dogs account for about 33 percent of all of the home insurance liability claims that are made, according to Esurance. Removing these liabilities or increasing security or deterrents around these fixtures can often reduce your premiums and make your home more secure.
Do you have a home business?
You might not think of a home business as being particularly risky, but there are probably a lot of things that you use for your home business that you might not have in your home otherwise. Most offices have computers, printers, scanners and other electronic equipment of value which make your work-from-home operation easier, but also put your home at an increased risk of having a fire or make your home more enticing to burglars. Additionally, you may also have people coming in and out of your home regularly, which would also constitute as a risk in your insurance company’s mind, both in terms of liability and security. Having a limited access area or dedicated business space can help, though the rules for different insurance companies can vary. Speak with your agent to find out what options might be available to you.
Do you live in a good neighborhood?
There isn’t a whole lot that you can do to control the people around you, but they could play a part in how high or low your insurance premiums are. If there have been burglaries, vandalism incidents or other signs of trouble in your neighborhood, your insurance company will often adjust your rates accordingly. You could end up paying more for homeowner’s insurance simply because of reports that were made previously in or around your home, even if you’ve never been involved in them. This is just one more reason to factor in the quality of the neighborhood when shopping for a home
Phillips Real Estate understands that most people want to keep their homeowner’s insurance rates as low as possible. We can help them do it by showing them good homes the meet their needs in good neighborhoods with limited risk factors. Get started with finding the home of your dreams by calling us at 405-368-9409 today to schedule a showing at one of the many available properties in the area.