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Consumers buy homeowners insurance to protect themselves against unforeseen circumstances. Mortgage companies require that the property be insured to protect their interest as well. Even before purchasing the insurance or ever using it there are factors that go into the price you will pay. You may want to consider the following risk factors prior to purchasing and insuring a home.
1. PETS – There are several breeds of dogs that are considered to be aggressive and can greatly affect your insurance rates if you have one of these as a pet. Many companies won’t insure you at all if you have exotic or wild animals.
2. CREDIT SCORE – The insurance companies will take a look at your credit score in order to get an idea what kind of risk you pose to them. It may be worth your while to take the time to repair items that are causing your credit score to be lowered.
3. LOCATION – I’m sure you’ve heard how important location is for resale of a home, but it also has a great impact on your insurance premium. If you live in an area prone to hurricanes or known for a high rate of crime it will be reflected in your homeowners insurance.
4. TRAMPOLINES – Exercise for children is important, but trampolines pose an obvious risk. There is an average of 92,000 hospital visits each year due to injuries on trampolines. If friends or neighbors are involved you can be held liable for their injuries, as well.
5. SWIMMING POOLS – While every drowning is tragic, they continue to happen. If your home has a pool your insurance premium will be higher.
6. FIRE – Your proximity to a fire hydrant as well as a fire station can affect your insurance rate. While this probably isn’t a determining factor on where you will choose to live, it is something to keep in mind for safety and insurance costs.
7. MAINTENANCE – Owners who don’t maintain their property may see their rates raised or their insurance cancelled altogether.
8. WEATHER PREPARATION – When your insurance company inspects your home they may require you to make changes or repairs if anything may lead to greater damage in harsh weather, such as missing shingles, a top-heavy tree, etc.