Michelle Dixon September 22, 2015 No Comments

A question that often comes up is how Home Insurance is calculated. This is important to know so you can be confident that you’re receiving proper coverage and paying fair premiums.

It’s easiest thought that your Home Insurance is determined by the condition of your home and how resistant it is to damage and theft. So, simply put, any known or unknown problems with your home could mean paying extra money for insurance. There is a wide range of potential issues, but the following are of the most common:

Location: Your home insurance expenses could be severely affected by where your home is found. For example, if you live in an area or city that is known to be hit by tornadoes, hurricanes, earthquakes versus a home that is situated in an area that is not prone to natural disasters. Also, areas that are known for high frequency of theft or other crimes will often carry higher insurance costs.

Fire Emergence access: Home insurance is influenced by whether your home’s location has fire hydrants in close proximity, or a fire department within 5 miles. The closer either of these are to your home, the quicker a response to destructive fires.

Damaged roofing: This has the high potential for severe water damage in homes, potentially meaning thousands of dollars in repair. Water damage can also lead to mold infestation and, therefore, health issues.

Bad electrical wiring: One spark in a home, which is commonly filled with many sources of flammable materials, can lead to a fire that destroys part of, or entire, structures.

Not enough safety features installed in your home:
1.) If there was a fire and you do not have the proper amount of smoke detectors in your home, along with fire extinguishers, then your home is at a greater risk to have more damage done to it.
2.) By not having a decent, functional alarm system your insurance providers will be slightly more concerned about theft.

Though many of these come with a hefty charge to renovate, one rational justification is that these improvements are more than just saving money on insurance, they are ways to ensure the safety of you and your family. If you have any questions about your Home Insurance, or would like to discuss home improvements you’ve recently made, don’t hesitate to contact us at 1 (845) 986-1177.