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There are many factors that can affect your homeowner’s insurance rates. Aside from your home’s actual value, insurance companies also look at various factors which may increase or decrease your home’s insurance rate. To learn more about the influences that affect homeowner’s insurance rates, examine the following factors and insurance tips for homeowners listed below. • Age and the construction of the home- Technically, the newer the home and the more well-maintained it is, the lower the homeowner’s insurance rates. Therefore, it is important to make sure to conduct routine maintenance on your home. Routine maintenance helps ensure the plumbing and HVAC system, as well as the electrical wiring are in good condition in order to get better insurance premium rates. In addition, homes which are built with durable, fire-resistant materials such as concrete, brick and stone have lower insurance rates than homes built with less durable materials such as wood. • Location of the home- The location of your home is one of the most important considerations insurers use to determine your homeowner’s insurance rates. If your home is situated at disaster-prone areas including flood, wildfires, hurricane and tornadoes, then you should expect your rates to be higher. In addition, rates could also be higher if you live in an area where the crime rate is high, building costs are expensive and there is no fire station near your home’s location. • Claims- If there is an easily resolved problem and no real need for you to file an insurance claim, then it is best not to file one. Homeowners typically pay higher homeowner’s insurance rates when they frequently file claims. Therefore, to help you keep insurance costs low, try to handle issues that are small on your own. • Risks- There are property risk factors that affect a homeowner’s insurance rate. Other elements that will definitely increase your insurance rate are swimming pools, the ownership of aggressive dog breeds, trampolines and guest houses. Keep in mind that some insurers may not allow extended coverage for these risk factors. • Credit score- As with any financial investment, credit scores play an important role in determining your insurance rate. The higher your credit score is, the lower your insurance rate because you would be considered a low risk client. Therefore, during the course of your search for the best homeowners’ insurance, checking your credit reports is a must. This will help you correct any issues before you submit an application to an insurance company and help to insure that you that you get a better policy for lower rates. In addition, homeowners who have higher credit scores and do not frequently file claims are often offered the incentive of lower insurance rates. There are a lot of factors involved when it comes to the determination of your home insurance rates. If you feel as if you are paying high rates, peruse the list above in an effort to determine the reason you are being charged expensive insurance costs so that you can make practical changes to lower your costs. Joy Mali is an active finance blogger who is fond of sharing interesting finance management tips to encourage people to manage their personal finances. More specifically, she advocates that people should check credit reports and scores regularly.
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