Home Insurance Concerns - Oro Valley Real Estate
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Want a better understanding of what drives up your insurance costs? Here are features that commonly affect homeowners insurance rates.
Build and Age
In general, the older the home and the worse its condition, the higher the insurance premiums will be.
The riskier your home’s location, the more expensive it will be to insure your abode. For instance, those living in areas of the country prone to floods.
Do you live in a neighborhood where crime rates are considerably higher than average? Installing a home security system, new locks and surveillance cameras could all help reduce your homeowners insurance costs.
Condition of the Roof
Replacing a roof can cost up to $25,000 or more, depending on the materials and size of the home. In addition, a roof that isn’t structurally sound is less likely to provide adequate insulation and therefore higher energy bills.
Pools and hot tubs
They carry serious risks to homeowners and anyone else swimming in these backyard features. To protect themselves pool owners will need to purchase additional liability insurance. Preventative measures, such as adding perimeter fences around the pool and/or alarms on the doors, may help keep liability protection costs low.
Trampolines are found in thousands of backyards all over the country. Despite their popularity, though, this recreational feature means high insurance Consult your insurer for additional help.
My homeowner’s insurance covers me... right? Don’t count on it. Flood protection is one of the primary exclusions on a homeowner’s policy. Even though you live in the desert, floods still pose a serious threat with monsoons and winter storms.
Are losses to your home covered if your home is vacant? Not Likely. Most homeowner’s policies contain exclusionary language for losses that occur when a home is deemed vacant. A vacant home is more susceptible to a loss because no one is there to prevent or mitigate it. Common losses to vacant homes include Burst Pipes Broken Windows and Vandalism.
If you take some specific actions (e.g. leave personal property in the home, check on or have someone check on the home at regular intervals), your carrier may determine that your home is not vacant as defined in their policy.
Market Value or Replacement Cost
Why should I insure my home for more than the purchase price?
Consider this client’s experience:
Purchased home in March 2009
Purchase price was $125,000
Homeowner insured the home at the estimated replacement cost of $274,000
One year later, their home burned to the ground.
Actual cost to replace the home totaled $261,000
Insured at Market Value, Insurance only covers up to $125,000
Insured at Replacement Cost, Insurance covers $261,000, all costs covered!