Understanding which factors are considered and what goes in to calculating insurance premiums can be tremendously useful information to the average homeowners when it comes to choosing a home insurance policy that is right for them. At MBS Insurance Brokers, our team deals with premiums and insurance policies on a daily basis. We’re used to sorting through the fine print and advising our clients on making informed choices. You don’t need to stress out over hunting down the appropriate information! Contact one of our insurance brokers to get started and read our blog about the key factors you need to be aware of that can influence your premiums.
The higher the value of your property, the more you’ll pay for premiums. This is due to the fact that the cost of replacing your home and the objects within is a determining factor in calculating insurance rates. It’s a simple concept, but it’s an important one to keep in mind. For this reason, insurers typically require a complete inspection of your home.
Substantial renovations can alter the value of your property, which means your premiums may need to be raised. In fact, there are many myths surrounding the impact of renovations on your homeowners insurance, although certain upgrades can help you cut costs in the long run.
Insurers keep track of the number, types and costs of claims in a given neighbourhood. This allows them to evaluate the likelihood that you’ll file a claim. Similarly, proximity to fire stations and hydrants is taken into account when evaluating the potential cost of a house fire.
Electricity and plumbing
Older electrical systems pose a higher risk of house fires, which is why insurers will pay attention to your house’s wiring. Old aluminum wiring may need to be replaced entirely. The same goes for plumbing: lead piping is more likely to crack or leak than newer copper or plastic pipes.
Wood stoves can add a rustic touch to your home, but they’re also a common cause of house fires and carbon monoxide poisoning. Insurers are likely to want to inspect them to make sure they’re installed properly. For the same reason, a house with a wood-burning stove costs more to insure.
Roofs have finite lifespans. Many insurers will only pay a small fraction of the replacement cost of your roof if it’s over a certain age. Insurers usually prefer roofs that have been updated within the last 20 years.
Rentals and pools
Your premiums will probably go up if you decide to rent out part of your house or install a pool. This is because both of these carry an increased risk for injury and property damage.
Security and claims history
Security systems and fire alarms, especially if they’re monitored by an outside service, are a good way to reduce risk and potentially lower your premiums. That said, don’t forget that insurers will take your claims history into account: if you seem likely to make a claim, your premiums could increase.
Connect With One of Our Brokers – We’re Committed to Protecting You Every Step of the Way
If you’re looking for knowledgeable brokers to help you find home insurance in Edmonton, give us a call at MBS insurance Brokers Ltd. Our team is dedicated to helping you find the right policy. Call us today to set up an appointment.