Have you ever wondered why your homeowner’s insurance premium rate is the number it is? Have you ever wondered how can I save money on homeowners Insurance in South Carolina While there’s a lot of algorithms and research involved in calculating the amount your provider bills you each month, that number can be dissected by looking at a few main factors.
A large part of your homeowner’s insurance premium rate has to do with the age of your home and the materials used to build it. Older homes tend to have more problems with the electric wiring and plumbing systems and often their foundations have weakened over time.
Older homes made with wood typically carry a higher risk than homes built with other materials as water and fire damage are more likely to occur. If your home was built before 1978, it might have been painted with lead paint–another high-risk factor that could affect your premium.
- The Upgrades You’ve Made
Those living in the older parts of Charleston, take note: the upgrades you make to your home could affect your homeowner’s insurance premium coverage, so you might want to do a little research or get in touch with your provider before you hit the hardware store.
Some upgrades might actually lower your premium rate, such as installing a wind-resistant roof, adding protection to doors and windows, installing an alarm system, and putting up a security fence.
Others could lead to a higher premium. Swimming pools, hot tubs, trampolines, and home offices all add to the risk of insuring your home and may affect your monthly bill.
- Your Pets
Did you know that certain dog breeds and other high-risk pets can affect your monthly rate?
High-risk dog breeds like Pit Bulls and Rottweilers could hike up your homeowners insurance premium, so keep this in mind when you’re shopping for pets and reach out to your provider to see how it’ll affect your insurance plan.
- Your Location
We all love the coastal life, but unfortunately it’s common practice for providers to charge higher insurance premiums for those living close to water. Yet it’s usually a fair trade-off–all this fickle coastal weather means we need all the protection we can get.
Location factors like weather history, distance from the nearest fire/police station, and neighborhood crime rates are all taken into account when calculating your premium. While there’s not much you can do about these factors now, it’s a good idea to keep them in mind next time you’re shopping for a new home.
- Your Previous Claims and Credit History
All the crazy weather we’ve been having here in Charleston lately has undoubtedly led to the filing of lots of insurance claims.
Your claim history can affect your monthly premium, as can your credit history. Mitigate these two factors by educating yourself on when it makes the most sense to file a claim and by being mindful of your credit score.
While it’s not wise to select a plan solely based on a monthly premium, it’s a good idea to educate yourself on how your premium rate is calculated. Awareness of your premium rate and overall homeowner’s insurance plan will have you using your policy to its fullest potential.