Getting Home Insurance: Factors That Could Affect Your Premiums

Collaborative post

If you are a new homeowner or are thinking about buying a new home, one of the first questions you will likely ask is how much your home insurance is going to cost. While this might seem like a straightforward question, it is not an easy one to answer. There are a lot of factors that can determine how much you pay for home insurance, including what you want to be covered and your personal circumstances. Only by understanding these factors can you pick affordable home insurance.

Your Address

The first thing an insurance provider will look at is your home’s exact location. In addition to impacting your personal life in various ways, your home’s location can also tell a lot about your insurance requirements. The location will determine factors like crime rates, which is an important metric for insurance companies. It will also tell a lot about your home’s value, something else that is taken into consideration when insuring it.

Required Coverage

How much coverage you need also determines how much you pay for home insurance. If you own an expensive home, you will pay a higher premium. This also applies to those looking for contents insurance and who have expensive furniture, electronics and personal belongings like jewellery and watches, and including add-ons and extra coverage options with your policy can also push the price up.

Home Security

Insurers will always want to know how secure your home is. A secure home means there is a lower probability of break-ins and burglary. Your home’s security will include things like the locks you have on your doors and windows, roof access and security options like alarms. Read more about why security alarms are such an important thing to have at home, and maybe get a quote to have some installed.

Homeowners can get better insurance quotes by installing affordable home security systems. These systems have come down in price as they have gotten better over the years, and they are also easier to install than ever before. Take advantage of smart devices to keep an eye on your home even when you are away.

Your Insurance Provider

Choosing the right insurance provider is the best way to get the best coverage at an affordable price. Every insurance provider prices their coverage differently depending on what they cover. For example, some insurance companies will cover accidental damage like a TV that was dropped while cleaning the house while some will require you to pay an additional premium for these kinds of damages.

To ensure you get the best coverage at an affordable price, it is important to take your time when shopping for an insurance provider. Start by listing down what exactly you want to be covered and then use comparison sites to get home insurance quotes. You can pick the provider with the best coverage for what you can comfortably afford to pay.

Comparison platforms like Compare NI help you compare up to 30 home insurance quotes from reputable insurance providers. Once you enter your details, you only have to wait for a few minutes for the insurance quotes to be made available. Compare NI also allows you to pay for your chosen insurance policy online or by phone depending on the provider you choose.

Coverage Period

As you know, buying products in bulk often leads to discounts and this is the same with home insurance. Many providers will give you a discount for a multi-year coverage plan. For many people, the best option will be a 3–5-year insurance plan as opposed to the annual renewal plan some insurance providers have. The average savings you can get from going from an annual plan to a 3-5 year one is in the 5-10% range.

Replacement Cost

The replacement cost is the amount it takes to repair or rebuild a home in the case of an event. The higher the replacement cost, the higher your insurance premiums will be. One thing to note is that the replacement cost is not the same as the home’s value. The value of the home is determined by the market which takes into account things like the location, amenities, and the land the home sits on. The replacement cost, on the other hand, is determined by factors like building materials, the size of the home, local construction costs and other factors. The replacement cost can be more, equal to or less than the home’s value depending on the amount of damage done and what needs to be repaired or replaced.

Claims History

Insurance companies are very sensitive about the insurance claims you make. They assume that homeowners who have made claims in the past will do so again in the future. Things get even worse for homeowners who have made multiple claims in recent years as they are seen as a bigger liability. These claims will often follow you to a new home because even when you change homes, your personal details do not change, and the insurance company likely already has your claims history even if you do not know they do.Home insurance is a necessity for any savvy homeowner. It can get expensive, however, and this is why it is so important for homeowners to know what will affect their premiums so they can take appropriate actions to keep them as low as possible.

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