Guest Post - Everything You Need to Know About Home Insurance

We often get asked questions about home insurance; what it covers, how you know what the cost will be, etc. But we are not in the insurance business, so, we contacted an expert to help us out with this one!  Rachael Harper is the Content Marketing Strategist of Bennett & Porter, a wealth management and insurance firm based in Scottsdale, Arizona. She wrote the following article to share more about Home Insurance and the factors that can impact your rate! 

​Factors That May Impact Your Home Insurance Rates

Ever wonder why you are paying more for home insurance than someone you know? Insurers cover several factors when computing your home insurance rate. The factors can vary—some historical, some regional, others personal.

Insurance providers also have different ways of assessing risk. That said, it is recommended that you compare home insurance quotes to ensure you get the most affordable rate possible.
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Factors that Can Affect Your Home Insurance Rates

The cost of home insurance will depend on many factors. Below are some of the critical elements that can affect home insurance rates:

Location
Location is one of the most significant factors insurance companies consider when calculating your home insurance premium. Most insurance companies also track the number, types, and cost of claims in each postal code area. High-crime neighborhoods and earthquake and flood-prone locations have high insurance rates.

Square Footage
On average, larger homes will cost more to insure. This can be attributed to the fact that more space and more furnishings need to be repaired or replaced after a loss. Essentially, the more content, the more space, the higher the insurance premium, and the more insurance will be required.

Credit Score
A good credit history can reduce your home insurance premium. Statistics show that those with good credit history typically make fewer insurance claims. It is essential to keep in mind that any inquiries into your credit history or score will be recorded in your report. However, your credit rating won't be affected when done for insurance purposes.

Renovations
When you renovate your home, your home insurance premium can also increase as the amount of insurance coverage also increases. In line with this, it is recommended that you inform your broker about any renovations you have done so you will be able to get adequate insurance coverage.

Roof Condition
The condition of your roof can affect your homeowners policy significantly. New roofs often mean reduced premiums. Homes with older roofs will also typically pay more. Most home insurance providers expect homeowners to keep tabs on their roofs and make repairs when required.

Type of Dog You Own
While many people love their dogs, home insurers are not as enamored. If you have a dog that's considered "aggressive," it would be a good idea to shop around for a policy. Some insurance providers will not increase your rates, while others might. The typical home insurance rate is .3% if you have a dog that’s considered an aggressive breed.

What Homeowners Insurance Covers
What does your home insurance cover? In rare instances when you need to file a claim, knowing the answer to that question can make a world of difference. While home insurance policies have standard provisions, what's covered can vary from state to state, depending on the policy you choose.
Specifically, home insurance policies will only cover perils that are listed as covered events in the policy. In other words, if a specific disaster is not listed as a covered event, homeowners will not be able to file a claim if it transpires.
Typical perils covered include:

● Smoke and fire damage
● Weather-related damage like hail or wind damage
● Water damage from internal sources, but not from flooding
● Theft of personal property
● Damage caused by ice or snow on the roof
● Explosions (i.e., gas explosions)
● Damage caused by motor aircraft or vehicles


Many insurance policies include provisions for contents (personal property that is not affixed to the house). This is the reason theft of personal property is usually considered a covered event.

Most home insurance policies also cover damage to outbuildings, fencing, and landscaping. The coverage is generally equivalent to up to 10 percent of the total policy amount.

There is also a provision that provides homeowners with temporary living expenses if their home has been damaged to the point where it is no longer livable. The insurance provider will reimburse homeowners their living expenses while their home is being repaired.

Lastly, most home insurance policies provide liability coverage if a family member, a third party, or yourself gets injured on your property. The same is true when your dog bites someone.

Conclusion
Several factors can affect your home insurance rate. That said, it is crucial that you carefully analyze your options before deciding. After all, your home is a massive investment, and you need to be able to protect it accordingly.

​About the Author:
Rachael Harper is the Content Marketing Strategist of Bennett & Porter, a wealth management and insurance firm based in Scottsdale, Arizona. When not writing, she makes use of her time reading books and playing bowling with her family and friends.