3 Home Features That Affect Your Home Insurance Risk

3 Home Features That Affect Your Home Insurance Risk

In addition to the floor plans, backyard landscaping, modern designs in the kitchen and other aesthetic features of your dream home, it’s important to consider a few factors that could affect your homeowners insurance risk and the likelihood of having to file an expensive claim before you close on a new house.

1.Location

Location likely already is at the top of your checklist when it comes to buying a home you’ll love, whether you’re a parent interested in which schools you’ll be zoned for or a younger home buyer interested in the social scene. But here’s how the location of your home may also have a big impact on your insurance risk – and consequently your monthly payment.

•A high risk of severe weather could result in a higher premium. Homeowners who live in flood zones must pay additional premiums for flood insurance coverage – it's not included in standard homeowners policies. Coastal homeowners who are more susceptible to hurricanes and Midwestern homeowners vulnerable to tornadoes also could pay more for coverage since their risk of claims is higher.

•A house in proximity to a fire station or hydrant could qualify for discounts. The closer and more accessible your home is to emergency responders, the lower your risk of devastating damage and the less insurance carriers are likely to charge you for coverage.

•A neighborhood with a low crime rate typically translates into lower insurance risk. The less likely your home is to be burglarized or vandalized, the you're likely to pay for coverage. Check out the local crime stats to assess the chances of this.

2.Security features

Consider how investing in a few security features can help minimize your risk for extensive damage and help lower your insurance payments at the same time.

•Fire/smoke detectors help warn you of danger before it’s too late.

•Home security systems, especially monitored ones, could help ward off potential intruders and burglaries.

•Deadbolts help prevent break-ins and property losses.

•Fire extinguishers help you take action to prevent damage before it’s too late.

These security features are so effective at reducing insurance risk and preventing claims that many top providers offer discounts ranging from 5%-20% just for having them in your home.

3. Updates

If these features of your home are out of date, your insurance risk and rates could go through the roof:

•Electrical wiring that uses a fuse box and ungrounded outlets presents a higher risk of fire than modernized systems.

•Plumbing systems that haven’t been updated in the last 10 years are more susceptible to leaks and broken pipes that could lead to big water damage claims.

•Out-of-date heating and cooling systems are more likely to contribute to house fires and extensive property damage than those that have been recently updated.

•An older roof may be more vulnerable to severe weather and more susceptible to leaks that could leave you with expensive water damage.

Many top providers offer discounted rates to homeowners who update their homes and help reduce the risk of expensive insurance claims. In fact, if your home is less than 10 years old, you could qualify for a new home discount of up to 20% on your premium.

This article was written by Carrie Van Brunt-Wiley, who contributes to the HomeownersInsurance.com blog. The HomeownersInsurance.com blog serves as a resource center for insurance consumers and homebuyers across the country.