Installing wood burners in a home can increase the amount homeowners pay for California house insurance because they are considered a fire hazard. To limit the dangers, homeowners should select safe models of wood burners and make sure they are installed and operated properly. Regular maintenance and use of quality wood are important safety measures. Even when homeowners use safe practices, insurance companies regard the installation of wood burners as events that increase the risk of damage to homes. Some insurance companies may want to inspect homes after installation before approving new coverage for homes with a new wood burning stove.
Wood burners may increase insurance premiums, but this does not mean that homeowners should not install them. Instead, homeowners should simply weigh the benefits and drawbacks before installing a wood burner in their home. Consulting with their insurance companies to find out exactly how this change could influence their premiums can help homeowners decide whether this additional expense is restrictive. Homeowners can compare California insurance quotes to determine which company offers the best coverage for their homes’ new feature. In some cases, homeowners pay less for heating or get more enjoyment out of their homes with wood burning stoves. These benefits can make slightly elevated risk of fire and the increase in insurance premiums to accommodate the risk worthwhile.
There are many reasons you could see insurance premiums increase, even if you have not made a claim. The main reason is based on the profits and losses experienced by the company. Most insurance providers use policy premiums to pay claims. If there have been a large number of claims, insurance premiums increase accordingly. Usually the insurance carrier is only allowed to make an increase like this once or twice a year. If you have now found you are unable to make your insurance payment, your best option will be to shop around for more affordable quotes on the same type of coverage.
Another reason insurance premiums increase is because you have moved to a new location or if you have made changes in your policy. Depending on where you live, there may be more risks for certain types of hazards such as theft. In this case, the insurance provider may increase your premiums to account for the increased chance you may need to make a claim. Additionally, if you have made changes to your policy, such as reducing your deductible, this could also mean an increase in your premium. Insurance companies use a formula to calculate how much you will pay for your coverage. When any type of change is made, this can either increase or decrease the amount of your payment.
Remember, shopping around for quotes on insurance should be considered once or twice a year. When your policy is up for renewal is a great time to see if you could save some money by working with another insurance carrier. You can find affordable quotes online in minutes and then compare the company that will give the best rates for the best coverage.
Homeowners are always looking for ways to lower premiums without sacrificing coverage. For many, the answer is as simple as purchasing a home security system. If you are planning to buy an alarm system to lower insurance costs, there a few things you need to know first.
Types of Alarm Systems
There are two types of home security systems – monitored and unmonitored. Some insurers offer premium discounts for both, although the greatest savings are always provided through monitored systems. Although monitored systems usually cost more than unmonitored systems, much of the cost is offset through discounted insurance premiums.
What to Consider
On average, you can expect your homeowners insurance premiums to drop by as much as 20 percent once you install your alarm system. Considering average homeowner’s insurance premiums in America are approximately $800 to $1,000 annually, this could mean a savings estimated at $160 to $200 per year, or $16 per month. Chances are, the insurance savings will not completely pay for your monthly alarm monitoring costs, but it can lower your alarm costs by 30 to 70 percent.
Keep in mind, however, that your insurance premium discount will vary based on your insurance company. Contact your insurer to find out what alarm system discounts are available to you. This may also be a good time to shop and compare rates from other insurers as well.
Keep in mind that other similar discounts may be available to you as well. For example, some alarm system companies also offer monitored smoke and heat alarms. Like burglar alarms, smoke monitors help ensure the fire department is deployed as soon as possible in the event that your home catches fire while you are away. This can help contain damage, as well as insurance replacement costs, resulting in an insurance premium reduction.
Drivers carefully shop and compare insurance rates to ensure they are getting the most coverage available at the most affordable price. However, auto insurance premiums are never fixed, and may fluctuate over time. Whether they rise or fall, there are several reasons why car insurance rates are subject to change.
What will Cause Car Insurance Rates to Change?
One of the most common reasons car insurance rates change is due to a traffic accident or citation. Speeding, driving under the influence or being ticketed for a traffic accident are all reasons insurance rates may rise. However, some minor traffic citations may not go on your permanent record or raise your insurance premiums if you take a defensive driver’s education course in the weeks following the citation.
Another reason your car insurance rates may change is if you file a claim. Whether you are responsible for a multi-car collision, or if you become the victim of a car break-in, filing a claim against your policy will likely result in a higher insurance premium. On the other hand, if you do not file a claim for several years, you may see a reduction in your insurance premiums.
Age and Credit
Some factors that influence your auto insurance premiums are unrelated to your driving and claims record. If you purchased your insurance policy while you were young, you may see your premiums drop as you get older. For example, insurers often provide significant rate reductions when women turn 21 and men turn 25.
Similarly, your credit score has an influence on your ability to secure a low insurance premium. Insurers often perceive individuals with good credit as safe drivers. If you received a preferred rate due to a good credit history, but your credit score subsequently dropped, you may see an increase in your auto insurance premiums.
If you own a home, chances are you have homeowner’s insurance to protect the investment you’ve made in your property. Although home insurance is an important way to guard against major repair and replacement expenses, most homeowners wouldn’t mind a lower rate for their insurance premiums. Fortunately, there are ways for your to save on home insurance without sacrificing your coverage.
Do More to Protect Your Property
One of the most common discounts that insurers shell out to homeowners involves the additional safety measures taken to avoid insurance claims. For example, insurers may ask you if you have a monitored alarm system, which can equate to as much as a 20 percent discount in premiums. Other safety discounts may be available for a fence around your pool or extra fire alarms and extinguishers.
Raise Your Deductible
Your deductible is the amount of money you must pay out of your pocket before your insurance company will pay a penny for your claims. The higher your deductible is, the lower your premium will be. Depending on your policy and the amount of coverage you have, raising your deductible from $500 to one percent of your home’s property value could equate to hundreds of dollars per year in savings.
Purchase Multiple Policies
Unless you live in a pedestrian-friendly community, chances are that if you own a home, you also have a car to insure. Insurance companies like it when their customers purchase multiple insurance policies from them and are willing to dole out discounts for having both your home and auto insurance policies secured by the same provider. If you do not need auto insurance, ask your home insurer if multiple policy discounts are available for purchasing other types of insurance, such as life insurance or coverage for a recreational vehicle.
Compare Home Insurance Rates
Ultimately, the amount of money you pay for home insurance is directly correlated to the company you choose to be your provider. Every insurance company has a different formula for determining how much to charge each customer in premiums, and the company that is most affordable for a friend or family member may not necessarily offer the best rate to you. Be sure to shop around and compare home insurance rates from a private insurance broker who offers quotes for multiple companies. You’ll save time getting quotes from each company individually and you won’t feel pressured to purchase from any particlur one.
An insurance deductible is the sum of cash you must pay out of your own pocket for an insurance claim prior to the insurance company starting to pay on the claim. It’s typically stated in the policy as a fixed dollar amount, rather than a percentage. As a general rule, insurance deductibles and insurance premiums are inversely related. That is, the higher the insurance deductible, the lower the insurance premium. And of course, vice versa.
For example, a typical automobile insurance policy may have a deductible of $500. What this means if the insured has an automobile accident, you have to pay for the cost of repairs up to $500. Therefore, if the total car repair costs are $1,200, you will have to pay $500 (your deductible) and your insurance company will pay $700. Once you have paid the $500, you are said to have met the deductible.
Deductibles are usually defined per incident or per year. They can also vary depending on the origin of the claim. For instance, the same insurance policy may have varying deductibles when the loss arises from fire, theft, or natural disaster.
Based upon the insurance company and policy, an insurance deductible can be raised or lowered depending on how risk the insured is willing to assume. Insurance deductibles typically work the same whether the policy is for the home, car, or medical.
A policy with an exceptionally low premium will typically have an exceptional high insurance deductible. The key is finding the right balance for you when buying an insurance policy. A too high deductible can lead you into a financial bind should you find you need a claim. Additionally, a too high of a deductible on a car that has limited value may not make the most financial sense. On the other hand, a too low deductible can result in you overpaying in premiums.
It is a good idea to always have savings set aside in the amount of at least the size of your deductible, should you have to make a claim in the future.
In instances where a driver under your insurance policy has gotten into multiple auto accidents and received several traffic tickets, it may be in your best interest to exclude this person from your auto insurance policy. Any traffic violations that occur under your insurance policy, whether a fault of your own or another driver, will negatively affect your insurance rates and cause your premiums to increase dramatically. In order to exclude a driver from your insurance policy, you will have to deliver a written “named driver exclusion” to your insurance carrier to specify exactly which driver you would like to be excluded from your insurance policy. Once this person is excluded from your policy, he or she will not be covered under your personal auto policy for future accidents.
Although a driver may be excluded from your policy, you or the excluded driver will still be responsible for any damages or injuries that may result from an auto accident in which the excluded driver is at fault. However, you will only be personally responsible if the excluded driver was driving your vehicle at the time, regardless of whether or not he or she was covered under your insurance policy at the time of the accident. For this reason, you will want to exclude an at-risk driver as soon as possible, and make sure to terminate this person’s access to your vehicle after you have excluded him or her.
Your insurance company may recommend excluding a driver from your coverage policy if this person is responsible for any of the following:
- Multiple vehicle citations
- A suspended license
- Several at-fault accidents
- A DUI or DWI conviction
- Impaired mental ability
If your own record is relatively clean, having someone on your policy who has any of the violations listed could cause you to pay higher insurance premiums that you otherwise wouldn’t have to pay. Excluding this person from your policy would allow you to enjoy all of the benefits that you earned as a good driver, while eliminating and negative affects that this driver has caused.
If you’re interested in getting a great return on your investment, consider this: making periodic homeowners insurance comparisons can help you save on your insurance premiums and minimize your losses in the event your home is struck by a calamity. So even if you just invest an afternoon every year, it’s worth getting homeowner quotes to compare rates and coverage options from a number of different insurance companies.
Save Cash with Home Insurance Comparisons
While you probably did your research when you bought your current policy, over the course of 12 months, other companies might make adjustments to their services that result in lower premiums, or they might be offering special rates at the time you’re shopping around for a new policy.
In addition to rates, be sure to review the state of your home, as well as your own situation. For example, if you invested in an impact resistant roof, a home security system or a flood proof basement, you can almost certainly get a discount. You should also get a reduction of your insurance rates if you haven’t had any claims in the past three years or if there are less people living in your household than a year ago.
Use Homeowners Insurance Comparison Sites
Homeowners insurance comparison sites are safe to use, easy to fill out, and above all, convenient to access. You can request multiple quotes at any time of the day or night and review them whenever you like. Be sure to carefully review all of the quotes you receive and select your policy based on coverage as well as rates.
Insurance premiums can rise over time as they fluctuate with the market. However, insured people can work to keep their insurance premiums low by reducing their risks, selecting a deductible, grouping coverage, and comparison shopping before renewing a policy.
Installing a wood burning stove in a home can raise home insurance rates by increasing the risk of fire. On the other hand, using safe practices and taking action to reduce risks can reduce rates. Installing alarm systems in homes and vehicles, for example, can reduce the risk of theft and lower insurance premiums.
Select a Deductible
Having an insurance policy that covers all expenses can be an enormous convenience when needed. However, some people will find that they pay much more for their premium than their out-of-pocket expenses for repairs or replacement. Selecting an appropriate deductible amount can lower insurance premiums and result in lower out-of-pocket expenses overall.
Group Multiple Types of Coverage
Selecting a group of insurance policies from a single company, such as home, vehicle and life insurance, can result in premiums that are lower for the group than if the coverage was purchased individually.
Comparison Shop and Change Companies as Needed
Each time insured people renew their policies, they have the opportunity to comparison shop and change to new providers if they discover one that offers a lower premium for the right coverage. Many people assume that because their provider offered the best deal initially, they will continue to do so. This is not always the case, and it can pay to verify or dismiss that assumption before renewing.
Insurance rates and policies will vary between insurance companies, so it is best to consult with them regarding the actions you can take to reduce rates to discover which are most applicable.