Starting to shop for a new home can be an exhilarating experience that only gets more exciting when you think that you've found the property that you'll eventually buy. It's understandable if you're giving ample consideration to the size of the home and its attractive features, but it's also worthwhile to think about how your home insurance rate will be impacted by the home. A wide range of factors can either increase your rate or decrease it. And, while you shouldn't buy or abstain from buying a certain home simply because of how it could affect your homeowners insurance rate, this subject matter is valuable to keep in mind. Here are three factors to consider.
Location of the Home
The location of your prospective new home can either influence your home insurance rate positively or negatively. If the home is in a safe neighborhood with low incidences of property crimes, your insurance provider will provide you with a lower insurance rate because there's less of a chance that you'll need to make a claim. However, if the home is in a part of the city in which property crimes are more common, you can expect to pay more for your insurance. Simply observing the neighborhood can give you a rough idea of how safe it might be, but it's beneficial to also visit the local police department's website to view crime statistics for different neighborhoods.
Use Of Fireplace
There's no disputing the coziness that a wood-burning fireplace adds to a home, but it's important to be aware that this feature can translate into a higher home insurance rate. Your insurance provider knows the statistics – roughly 26,000 house fires each year are the result of the home's fireplace and/or chimney. This heightened fire risk means that there's more of a chance of you making a fire claim in the future, so your provider will raise your rate accordingly.
Splashing around in the backyard pool is a memorable way to spend a sunny day with family and friends, but beneath this high degree of fun there's a risk of someone drowning. Your insurance company will typically increase your home insurance rate when you have a pool. The risk to the provider isn't necessarily that someone in your family will drown, but rather a non-family member who is visiting your home to go swimming. This information shouldn't dissuade you from buying a home with a pool, but it's important to know up front.