When you are picking a house insurance policy, you want to know how much premiums you would be required to pay and how many claims you can make. In instances where you are not earning much, it is still possible to go-ahead to take a house insurance policy. The factors below would guide you in knowing the most important things that increase the price of your home insurance. You would also find some answers in line with how you can reduce the premium you would be expected to pay.
Cost of building
One of the major things that will determine the price of your house insurance is the cost of building your house. If your house is very expensive to build, then you can be sure that your premium will also be high. Several factors affect the cost of a building. Some of such factors include the size of the building, remodeling carried out on the building and the quality of materials used on the building. Even though not always, the quality of materials used in building a house will mean more expensive and thus, more costly to replicate. As a result, the insurance company would charge more premium for big and expensive buildings compared to smaller buildings and not too expensive materials. You can read Lemonade reviews to get an idea of the premium to expect based on the cost of your building.
Your home insurance will sometimes cover the risk of a person being bitten by a dog within your vicinity. Thus, if you have a dog, your premium might be higher. The type of dogs you have will also influence the cost. If you have an aggressive breed of dogs like pit bull and rottweilers, your premium will be higher than if you have dog breeds that are reputed to be gentle. However, your premium should be even cheaper if you have no dog. Some insurance companies will cross out covering dog bites within your property if you have specific very aggressive dogs.
The location of your house can also influence the premium you would be required to pay. A house close to a fire department means that in the event your house is on fire, help would come faster and repair will be cheaper. Thus, your premium will be cheaper. On the other hand, if you have a house close to a water body, the risk of flooding and hurricanes will hike the price of your premium.
The facilities in your building such as swimming pools and wood-burning stove could imply a higher premium. In more general terms, luxurious facilities imply more expense in replacing them, while risky facilities mean a higher risk of something happening to your house.
To reduce your premium, it is possible to cross out some things from the insurance policy. Deductibles, when it comes to an insurance policy, mean things you intend to cover for before the insurance company will pay the balance as a claim. The items you want to cross out might be those not too important to you or the ones you can afford on your own.