Paying Less on Home Insurance

Want to know a secret? Surveying your housing prospects through an insurer’s eyes will show you how premiums are determined.


To begin, knowing how premiums are influenced by housing amenities is key.


You’ll likely find that certain lifestyle choices are worth paying a little extra for. Here are a few other considerations that can alter your homeowner’s policy and its pricing:


Age of the Home and How It Was Built. New homes typically have the latest in safety features: wind protection, resilient materials, modern roofing and more. Insurers often discount premiums for newer constructions based on this. Older homes might have construction elements that can’t be “built the way they used to” without exceeding reasonable costs. While older homes have added character, knowing what your home is made of before you purchase will help keep your premiums free of surprises.


Location, Location, Location. ZIP codes can change policy rates, so knowing where the lines are drawn is good info. Houses built fairly close together can fall into different zones, making insurance for one more expensive than the other. Orientation of the property and distance from fire protection services can also be factors, as can cliffs, older trees and the likelihood of flooding.


Pools, Tree Houses, Hot Tubs and More. The fun things you’ve always wanted usually come with a higher insurance price tag. In legal mumbo-jumbo, these items constitute “attractive nuisances,” which means adding extra liability protection to your policy may be a good idea.


Décor Add-Ons Can Add Up. Features like stand-alone wood-burning fireplaces, spiral staircases and glass-roofed sunrooms can raise your rates due to added danger. Being careful about getting just what you want will help you avoid getting more than you bargained for.


Working From Home Has Costs. The more people that come to your property, the more liability claims that could occur. Plus, any added business equipment needs to be insured as well. Knowing how home businesses can affect policies is good information to have before you quit your day job. Your agent can also tell you about umbrella policies which give you additional liability coverage.

Luxe Items Require Extra Care.
Expensive art, jewelry, collectibles, etc. add to your homeowners insurance for obvious replacement cost reasons. In some cases, separate insurance may be more cost-effective, so talking to your agent about the best options could save you in the long run.

Curious about enjoying homeowners discounts from American Family? Take a look at all the ways you could save.


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