What Makes Your Home Insurance Expensive? |
Posted: July 25, 2018 |
You’ve been getting quotes for home insurance in Fargo for a new house you’re buying. You’re shocked at how much a policy costs no matter where you go. It’s time to find out why you’re paying so much and what you can do about it.
Look at Liability
One of the first places to look is at how much liability you’re carrying and what risks you have. Liability coverage in home insurance protects you if someone gets hurt on your property. It’s a pretty standard component of house insurance unless you have specific items that increase your risk.
Expect to pay more if you have a swimming pool or trampoline. Both of these items can lead to serious accidents and even fatalities. You may also pay more if you own a dog, even one that’s not known to be dangerous. You can ask your agent what causes your risk to be higher, and they can tell you of any other potential concerns.
Consider Your Home
You’ll pay more for replacement value if you have an expensive home. A large home costs more to rebuild than a small house, which is factored into your premiums.
You may also pay more if you have a fireplace or wood-burning stove, which increases the risk for fire. On the other hand, you may qualify for a discount if you have smoke detectors in place or an alarm or sprinkler system installed.
Know What Personal Belongings are Covered
The third area where you may pay extra for home insurance in Fargo is coverage for your personal items. If you own expensive jewelry and other special items that are covered separately, you’ll pay more for your policy than if you just have a standard replacement policy.
It also depends on how much you listed for your policy. A young first-time homeowner may not have a lot of expensive furniture to insure. If they live in a two-bedroom starter home, there won’t be as much value in the furnishings as if they had a four-bedroom house that’s fully furnished with high-end furniture.
It’s a good idea to talk to your insurance agent if you think you’re paying too much for home insurance. They can talk to you about the different areas of coverage and look at places where you can reduce your coverage to save money. They may also recommend bundling your car insurance or other insurance products to help you cut costs.
Just make sure you don’t reduce your coverage to below what you need. For example, when it comes to coverage for personal belongings, it’s often a lot more expensive to replace your items than what you might think. And yet, the change in premiums for reducing that coverage is minimal.
Look at your coverage to find out where your premiums are going. This information can guide you on ways you can save money. At the same time, don’t let cost keep you from having the coverage you need to protect your biggest asset. FM Insurance provides excellent coverage for auto insurance quote Fargo area. Excellent rates and great customer service for all home, auto and business/commercial insurance needs.
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