Insurance is one of the major expenses involved with homeownership. As such, if you are anything like most people, you want to do your best to keep costs manageable. A large part of this process involves knowing what types of factors affect the cost of insurance coverage, aside from previous claims and your credit history. Learn about some of the factors that can affect the cost of your homeowners' insurance.
When a homeowner completes a remodel or another update to their home, one thing is typically for sure: the value of their home will increase. Homeowners' insurance is largely based on the value of a home. The reason for this measure is that in the event the home needs to be replaced, the value of the home before the damage will determine the value of the claim. An upgrade that increases the value of your home will also cause the value of your policy to increase, which can mean costlier coverage.
The age of the roof on a home is also important. A roof is often the largest and most important structure on a home, so its condition matters. Typically, the older the age of the roof, the more at risk it is for damage due to weather and other events. If the roof has been damaged, the insurance company may need to file a claim. Consequently, an older roof may lead to an increase in insurance costs.
An attractive nuisance seems like a bit of an oxymoron, but it is a reference to structures like trampolines and swimming pools. The reason these structures get this name is that while they are enjoyable, they also pose inherent risks. If you have an attractive nuisance on your property, you may have to pay an increased premium. However, certain precautions, such as putting a fence around the attractive nuisance can help lower costs.
If you decide to turn your talents into a home-based business, keep in mind that this is a factor that can impact the cost of your homeowners' insurance. On the one hand, you will have the equipment and other business gear that you will have to cover, and if you happen to operate a business where customers come to your home, you will also need liability protection. These factors can increase costs.
For a closer look at what specific factors can impact the cost of your homeowners' insurance, it is always a good idea to reach out to an insurance professional for further assistance. Click to read more or contact a homeowners' insurance company for more information.