“Why is my homeowners insurance so high?” This is a fairly common question from people looking to lower their insurance bills and get a better understanding of what items are driving this cost up. While every home has different features and conditions, there are some common components that can drive up a homeowner’s insurance bill. Let’s take a look at some of the factors that go into determining your home’s insurance.
Location of Your Home
Where you live can be an indicator of how high or low your homeowner’s insurance cost will be. If you live in an area prone to hurricanes, tornadoes, and “Acts of Nature,” your risks are higher, therefore, your insurance will be higher. Thankfully, there are ways to counteract these increases. For instance, homes that are in a storm prone area can build with that in mind, thus reducing risk and insurance premiums.
Your homeowners insurance could also be dependent on the level and frequency of crimes in your neighborhood. If your area has seen a recent spike in burglaries, car break-ins, or other property crimes, your insurance may see a jump in cost. Again, there are steps homeowners can take to keep these increases down such as installing a security system, new locks, surveillance cameras, or other security measures for your home and/or property.
Attractive nuisances are the fun but somewhat risky things at your home that could increase your liability. Some of the most common items in this category include: pools, trampolines, tree houses, or even a zip line.
The family pet, although loved and adored, may also be classified in this category. Depending upon the breed, size, and disposition, your dog may be driving up your homeowner’s insurance. Check with your agent to see if this is the case, and if it is, what you can do to counteract the increase.
The Age and Condition of Your Home
One major aspect that could be determining your insurance rates is the structure of your home. Is it made of concrete or wood? How old is your home? In general, the older the home and the worse its condition, the higher the insurance premiums will be.
In addition to construction elements that could be impacting your insurance, are there any design elements that could be considered risky? For example, do you have a wood-burning fireplace or stove? According to the U.S. Fire Administration, these items account for 36% of rural, residential home fires each year. Another risky home design element that could affect insurance is a balcony or winding staircase. These increase the likelihood of a fall in the home. Amazingly, 20 to 30% of tumbles from a balcony or circular staircase lead to moderate or severe injuries, say the Centers for Disease Control and Prevention.
Running your business from your home has many advantages, especially for professionals with young families looking for a work/life balance. Unfortunately, there are some disadvantages when it comes to insuring all the extra technology and/or equipment needed to run that business out of your home. All that extra “stuff” means more of a risk in case of a burglary or fire. Talk to your agent about further steps you can take, or a separate insurance for your home business.
If you are asking, “Why is my homeowners insurance so high?” talk to our friendly and helpful agents who can take a close look at your current policy and see where changes can be made. We can help you understand what items are causing the spikes. Call us at 978-774-4338, or contact us through our website with questions.