Things That Can Affect Your Homeowner's Insurance Rates
Do you have homeowner’s insurance or considering getting it for your home in Albuquerque? It can be complicated to understand insurance rates, but it all comes down to a formula that takes many variables into account. You need to know these five factors that can affect your bottom line if keeping rates as low as possible is your number one objective.
1. Your house's age and condition.
Obviously, the age of your house and its wiring, pipes, roof, lumber, square footage, and even how many corners it has all play a role in the cost of your insurance.
The risk attributed to the house is determined by the costs associated with repair or replacement. For example, if your house was built in 1920, old pipes and wiring may not be up to code. Insurance companies will charge more to insure these materials because they are more likely to damage or catch fire.
2. In a flood zone?
As mentioned above, if you are at high risk of destruction, your insurance will reflect that. If your home is near a river, you can expect to pay more than if it were in an area where flooding is less of a threat.
If your home is in a flood zone and you have a mortgage on it, your lender may require that you purchase separate flood insurance for your home — and that costs money. Despite your location, your mortgage company may still require flood coverage, so you should be aware of your lender’s requirements when shopping around.
3. Some dog breeds can make a difference.
Dogs can sometimes push up premiums. Certain breeds have been traditionally regarded as more dangerous and are associated with large liability concerns from your insurer, leading to a higher rate. Even if your dog is the most loving example of such a breed, it’s the insurance company that makes that general rule. So that’s why it’s important to check before buying insurance.
Three things can happen if your dog is considered a “dangerous” dog breed: you could be charged a higher rate from your carrier, your provider may cover you but exclude any liability associated with the dog, or the carrier could decide not to insure you at all.
4. Backyard attractions.
Pools, trampolines, and even backyard construction projects fall into a category called attractive nuisances that raises liability concerns (and your premiums) on the part of an insurer. If you have anything on your property which may attract the attention of minors or pose any level of danger, this will probably affect your insurance policy.
5. Proximity to the fire department.
How long would it take for the local fire department to get to your house if it caught fire? The faster they arrive, the more likely they are to minimize the damage.
A public protection class rating is required for every homeowner’s insurance policy. A PPC is based on a scale of 1-10, with one the best. Factors like nearby fire departments, the availability of fire hydrants, water towers, and even railroad tracks are considered in calculating the PPC.
It is possible that some changes can cut down your rates, but never intentionally lie or withhold key information from an application—this can result in your coverage being denied. Provide your agent with honest feedback, and they will assist you in finding the right policy and rate for your needs.
Contact us today to help you buy or sell your next home in Albuquerque. Looking for the perfect home for sale in Albuquerque? Our easy-to-use home search tool can help you start the process. Join us twice a week on our blog for more real estate advice and great reasons to buy a home in Albuquerque and the surrounding area. Follow us on Facebook for the latest Albuquerque real estate updates.
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