5 Factors That Can Impact Your Homeowners Insurance Premiums

Lucas Flood Agency

Home Remodeling
Home renovations and remodeling are an undeniably exciting time for many people. But homeowners often get wrapped up in the excitement of their home projects that they forget that remodeling can affect their homeowners insurance rates.

If you are remodeling one or more rooms in your home or tackling any projects that will increase the value of your home, it’s important to talk to your agent about adjusting your coverage. This will ensure that your replacement value is consistent with your upgrades. While materials and construction costs may increase your premiums, at least your coverage will be up to date.

Pools, Trampolines, and Other Fun Things
Pools and trampolines are known in the insurance industry as high risk factors. While most homeowner may love relaxing by the pool while their kids have fun jumping on the trampoline, these items can cause your premiums to increase as the liability risks are higher.

If you have added a pool, a trampoline, or something of the same nature, be sure to discuss this with your agent. Many homeowners fail to realize that they may be liable if someone is injured while using their pool or trampoline, whether or not they gave that person permission.

Home Security
Do you have a home security system? There are many DIY security service providers as well as some great professionally monitored systems. Homeowners who have antiquated forms of home security are at an increased risk for a home invasion that results in a loss, increasing their insurance premium as a result. On the other hand, homeowners with a modern home security system may benefit from reduced premiums. Ask your agent about the discounts available to you with home security.

Working From Home
More and more people are working remote jobs, some operating entire businesses out of their home. If you do work from home, you may need additional coverage for possessions like business vehicles, computers, electronics, equipment, and inventory. Additional liability coverage is also necessary if your customers will be on the premises. For homeowners who run their business out of their home, talk to your agent about endorsements to their homeowners policy or purchase a business owners policy.

The Age of the Home
This may be the single biggest factor impacting homeowners premiums along with past claims history. As your home and roof age, they become susceptible to damage from the elements or internal deterioration. It’s important for homeowners to keep in mind that as replacement costs increase over time, their insurance policy will need to be adjusted.

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