The value of your home plays a big part in the cost of your homeowners’ insurance, as well as the type and age of your home. But there are other factors that do not affect your premium. Here’s a list of what will and won’t affect your insurance premium:
Here are areas that you may think have an effect on your premium, but do not:
- The age of your house. Newer homes typically have fewer maintenance issues. Insurers may require upgrades to systems such as wiring or plumbing before insuring an older home.
- How much coverage you need. It probably goes without saying, but the higher the required coverage amount for your home and all its contents, the more costly your premium will be. But there are ways you could help lower your premium, such as a higher deductible or special discounts. (More on those below.)
- Your deductible amounts. Setting higher deductibles on your policy does mean you’ll pay lower premiums. But you want to make sure you can afford to pay that high deductible in one lump sum should you have to file a claim. (Minimum deductibles apply.)
- Discounts. A discount is offered for insuring both your home and auto insurance with us. Installing deadbolts and an alarm system will also qualify you for a discount. Length of service and new home discounts may also apply. Ask your Alfa® agent about other discounts that may be available.
- Construction type. Maybe that third little pig was on to something: Brick houses usually cost less to insure than wood frame houses. It’s because brick is more durable than wood and is more likely to withstand certain natural disasters or other risks.
- Remodeling. Any remodeling you do in your home will probably increase its value – and you need to have that increased value reflected in your homeowner’s insurance policy. Let your agent know of any remodeling or home improvements and their status.
- Your insurance score. Insurance companies use an insurance score, which is based on your credit rating, the probability of you filing a claim while under coverage and your claim history. The credit part looks at your credit history, on-time payments, low use of credit and accounts in good standing. If your insurance score is high enough, you may get a discount on your premium.
All coverages are subject to deductibles and policy limits. This is not an insurance policy. It is intended only to provide a general description of Alfa Insurance® and/or its product lines and services. An actual policy contains the specific details of the coverages, conditions and exclusions.
- Local fire protection. Insurance applications ask for your home’s address to determine the fire protection class or rating for your area. However, this is not part of your rate consideration.
- Attractive nuisances. Got a pool, hot tub or trampoline? Many people think these so-called “attractive nuisances” will increase your home insurance premium but they won’t affect the rate. However, you’ll need additional liability coverage to protect yourself in case somebody gets injured.
- The breed of your dog. Having an aggressive or “dangerous” breed (such as Rottweilers or pit bulls) will not increase your premium.
- Wood-burning stoves. Contrary to belief, a wood-burning stove will not raise your insurance premiums. However, make sure a licensed contractor installs your stove and it meets code requirements.
To understand all the factors that go into determining the cost of your homeowners’ insurance, talk to an Alfa agent today.