Your Homeowners Insurance Rate
At Moran Financial Solutions, we know that insurance is not always easy to understand, and for many people, it is not fun to research. However, when you need help understanding your homeowners insurance rate, we are here to help. In this article, learn about how homeowners insurance premiums are determined, factors that affect the cost of homeowners insurance, and ways to save on homeowners insurance in Florida. Check it out! First, let’s talk about how your homeowners insurance rate is determined. There are a few common factors related to this rate; the first of which is the cost of rebuilding your house. If a fire, flood, or another disaster destroys your home, your insurance policy should cover building it back up to its former glory. However, that typically means that the bigger your home, the larger your insurance rate will be. Other factors that affect your insurance rate include how old your home is, your personal insurance claim history, the different coverage you have, the history you have with your insurance company, and more. Additionally, pets can also factor in the cost of your insurance rate in some cases. An insurance company takes all these things into account when determining what you will pay for insurance because every one of these elements impacts your home and has the potential to cause damage or create a claim which the insurance company has to cover.
Now that we have gone over how an insurance provider calculates your insurance rate, we can talk a little bit more about a few other factors that influence your insurance.
4 Factors That Affect the Cost of Homeowners Insurance
There are several things that can affect your homeowners insurance rates. While these factors may not be items you think about as something that will raise your rate, they can. Learn more below.
- A Home Remodel –Making changes to your home like a kitchen or bathroom remodel, can increase the cost of your policy rate, as renovations can cause homeowners insurance coverage gaps. You need to be sure your insurance is updated to give you the proper coverage after a home remodel or significant change.
- A Pool or Trampoline – Another factor that can affect your insurance rate is owning a pool or a trampoline. While you might want to have these for your kids, it is important to keep in mind that they can cause you to pay extra for insurance. However, there are also things you can do to reduce the risk of injury if you choose to have these things in your yard; i.e., a net around your trampoline and a fence around your pool.
- A Wood-Burning Stove – A wood-burning stove impacts your insurance rates because of the risks and dangers associated with it. However, if you prove to your insurance provider that a licensed contractor properly installed your wood-burning stove, you can often avoid or limit increases in your insurance costs.
- A Home Business – When you have a business that you run from your home, you may need extra insurance to cover any stored equipment or business inventory. However, in this instance, you can also purchase a business owners policy that would cover these items.
These are just a few of the many items that can influence your insurance rate. If you are concerned about getting a Florida homeowners insurance policy that is fair and affordable, you should research multiple plans and work with a reputable insurance company.
Ways to Save on Homeowners Insurance
As you can see, many things affect your homeowners insurance rate, but there are ways you can save on this rate as well. For example, you can have a lower monthly payment if you increase your deductible. You can also improve your credit score to reduce your monthly insurance rate. When you are shopping for homeowners, insurance be sure to compare different rates before you settle on a policy. Homeowners insurance does not have to be overwhelming. You can get a great rate if you do your research and find the right insurance company for your home. At Moran Financial Solutions, we pride ourselves on helping people get the insurance coverage they need. Contact our team today for more information and help finding the best homeowners insurance policy.