do you really need the extra insurance?

What Factors Determine How Much You Pay For Home Insurance

by Rick Mcguinness

Do you need to purchase home insurance, but are worried about what it is going to cost you? If so, it helps to know what factors determine your home insurance premium.

Do You Have An Auto Policy? 

One thing to consider is if you have a vehicle and if it is insured with your home insurance provider. Many insurance companies offer a discount for having all of your policies bundled with the same company. This can help save a significant percentage from your premiums each year. 

Do You Smoke? 

While you may think that smoking will only impact your health insurance, it can also have an impact on your home insurance. Smoking in your home runs the risk of having a house fire due to something as simple as falling asleep with a lit cigarette. Expect to see an increase in premiums unless you can kick that nicotine habit.

Do You Have A Security System? 

Having your home monitored by a security system can help reduce your premiums for several reasons. The security system will act as a deterrent for criminals, since they typically come with signage that you place in front of your home. If someone does break in, alarms should help notify the police to limit the damage that would otherwise be caused to your home. Many security systems are tied into the smoke alarms, and can even notify the fire department if the smoke alarms are triggered. This will help prevent a lot of damage from happening in case a house fire was to happen.

Do You Have Old Plumbing And Wiring?

The utility lines in your home can play a role in how much you pay for home insurance, since old plumbing and electrical wiring are more at risk of causing a fire. For instance, knob and tube wiring is known for being a fire risk, and older galvanized plumbing has the potential to burst from rusting on the inside of the pipe. Having modern lines for electricity and water run through your home reduces the risk of damage.

Do You Run A Home Business? 

Having a business run out of your home is going to increase your insurance due to all of the additional assets. You likely have equipment or inventory in your home that the typical homeowner does not have, which will need to be replaced if it is damaged or stolen.

Reach out to your insurance agent for more information on home insurance premiums.