Getting home insurance is something that you should be dealing with the second you buy a house. However, a lot of people are puzzled by why their insurance is more expensive than, say, their neighbors. There are a lot of reasons why you are asked to pay more for your home insurance. For example, a homeowners insurance in florida might be more expensive than those living in the countrysides because it is a more popular area to live in, Here are other factors affecting your home insurance rate.
The size of your house
A larger house means that there are more things to cover if your house gets burnt down by fire or washed away in flood. This is why your home insurance will be more expensive if you live in a mansion rather than if you live in a small, one story and two bedrooms house. The first thing you need to do is measure your house and everything valuable in it before getting insurance. Make sure the insurance company asks you to pay for the appropriate amount according to your house’s size.
We’ve mentioned before that living in a popular urban area will cost you more than living in a rural area. However, that is not the only thing that can affect your insurance. The condition of your neighborhood will also be analysed. If it has high crime rates, particularly in theft and break-ins, your insurance might be more expensive. You will also have to pay more if you live in an area that is prone to natural disasters, such as flood.
The risk of fire
Aside from the risk of natural disasters and theft, the risk of fire is usually also taken into account. If your heating system is made up of oil and wood-burning heat, it increases the risk of fire. So owning a fireplace might affect your insurance rate. Your house is also at more risk of fire if the electrical system is outdated or overloaded, so make sure you check on that before going for an insurance.
Some people use their house for business, such as a small cafe or making their pool a public area. This will make your insurance more expensive. Running a food and beverage business in your house increases the risk of fire, and having a pool presents risks. Mainly anything that presents risks will be taken into account, even having a barbeque grill!