Homeowners insurance is an inevitable expense once you purchase your own home for sale in Irvine. Fortunately, however, there are a number of ways that you can control this cost while still getting optimal value from your plan. Following are several factors that can drive your premiums up. Knowing what these are and avoiding them is an easy way to curb your spending on this essential coverage.
1. Attractive Nuisances
As with any policy, any feature that increases the risks of insuring you will invariably impact your premiums. In the instance of home ownership, many of these features fall within the category of attractive nuisances. These are non-essential additions to your property or lifestyle that increase liability. Some of the most common attractive nuisances include swimming pools, hot tubs, outdoor trampolines, treehouses and dogs. When it comes to adding these things to your property, you’ll have to consider both the upfront costs and the impact that they’ll have on your home insurance premiums.
2. Owning a Home Business
More people are opting to make money from the comfort of their homes given that online resources have driven start-up costs down significantly. Whether you have a part-time company that you operate from home or a full-time endeavor that serves as your primary income source, you’ll have to account for this activity in your home insurance policy. Home businesses in any industry can have a considerable impact on your plan premiums, especially if no secondary, commercial, or contractor’s insurance exists.
3. Your Credit Rating
Credit scores always affect insurance costs given that insurers deem bad credit consumers as being slightly more high risk than people who are diligent in paying their bills. If you’ve just qualified for a home mortgage loan, odds are you have a fairly decent credit rating. With the recent and dramatic changes in your current debt-to-income ratio, however, you may see a small rise in your home insurance costs due to your assessed credit worthiness.
4. Plan Deductibles
Homeowners have the challenging task of achieving the perfect balance between plan premiums and policy deductibles. Your plan premium is the amount that you’ll have to pay to keep your policy active. Deductibles are the out-of-pocket costs that you have to pay before your insurance will kick in and cover the remainder of claims. A high deductible will result in lower premiums, however, this charge should not be so high that you are unable to pay it when property damages occur.
For more information on home buying in Irvine or to find a reliable and trustworthy Irvine real estate agent to work with, give us a call at (714) 454-6304.