How Home Building Materials Impact Your Policy Rate

Your Building Affecting The RatesWhen an insurance company quotes you a price for a homeowners insurance policy, they are doing more than just reviewing your age and personal records — they’re also evaluating the way your house was built. For instance, the type of materials that your home is constructed with can easily raise your premium, especially if they’re considered high-risk in the insurance industry.

Here are the top three things an insurance agent looks at before deciding on the price of your homeowner’s policy:

  1. Is the frame of the house wooden? One of the first things that an insurance company will look at before quoting you a price is the structure of your home. If the frame is primary constructed out of wood then you will probably end up paying more for insurance than you would if you had an all brick home.
  2. How much of the home is custom built? Many of the popular upgrades present a financial risk because they are costly to replace. For instance, if you have recently upgraded your kitchen, you may end up paying more to renew your policy because the cabinets could be expensive to restore in the event of an emergency.
  3. Is the home outdated? If the plumbing, roofing, or electrical wiring of your home is older, you may end up paying a higher price to insure it because older homes typically have more problems. The best thing you can do if you own an older home is to have it inspected so that all of its components remain up to code.

However, there’s no reason to panic if your home fits any of the above criteria. Almost all insurance companies offer multiple types of discounts that can be applied to your policy, so make sure you inquire about them before you sign the contract.

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