Metro Housing

Five Things that Could Affect Your Homeowners Insurance Premiums

Insurance companies are dropping policyholders every day because of things that make them a bigger risk than the company is willing to keep. Don't let this happen to you. Here are five common things that could affect the price of your homeowners insurance premiums and your policy altogether.

1. Is your home vulnerable to natural disasters? If you live in a high risk area, you may find it difficult to find or even keep your homeowners insurance policy. Many companies will not even begin to insure you if you live in one of these areas. The companies that will take on the risk often charge triple or more for a basic policy.

2. Is your roof secure? If your home's roof has not been changed in 25 years, you may find it difficult to find an insurance company to insure your home. However, if you update your roof with certain materials, you could get a significant discount on your policy. Ask your insurance representative for more information.

3. How old is the plumbing? Much like the roof, the age and condition of your plumbing will play a major role in your homeowners insurance policy. Leaking pipes can cause thousands of dollars of damage and many times you can't see the leak until after it causes major damage.

4. How far from your home is the fire department? Did you know that if you live within five miles of the fire department that you will likely pay less on your homeowners insurance policies than people who live more than five miles away? In some cases, the difference could be as much as 240 percent! Some insurance companies simply go by the number of fire claims that have been filed in the area.

5. Do you live in a nice neighborhood? If you live in a poverty stricken neighborhood where crime runs rampant, you are likely going to pay more for your homeowner's policy than people who live in nicer neighborhoods.