What kind of home insurance do you have in Albuquerque? How are insurance rates determined? Insurance rates are complex, as you probably know. It depends on an algorithm that considers many variables.
If keeping your rates as low as possible is your number one concern, you need to know about these four factors that can affect your bottom line.
- The age and condition of your house.
Your Albuquerque home’s age and condition are two of the major factors that determine your insurance rates. The age and condition of your home, as well as its wiring, pipes, roof, lumber, and even how many corners it has, all affect the cost of your insurance.
Home systems and materials that are more than ten years old are more at risk of failure and cost more to repair or replace.
Ultimately, it comes down to how much the house is worth and the costs involved in repairing or replacing it. A home built in 1920 may have old wiring and pipes that don’t comply with today’s standards. Since damage or fire is a greater risk with these materials, the insurance companies will charge more for their coverage.
- Some dog breeds can take a big bite out of your wallet.
Your premiums may increase if you own a certain breed of dog. Pit bulls and other potentially aggressive breeds have a reputation for being high risk, so your insurer will charge you more because they face greater liability concerns as a result. We know your dog may be the best out there. Some insurance companies use historical data to make their decisions.
When your dog is considered one of the “dangerous” breeds, your insurance provider could charge you a higher rate, cover your pet but exclude your liability, or deny you coverage altogether.
- Your pool can put your rates in the deep end.
A pool, trampoline, and even backyard construction projects fall into the category of attractive nuisances, which are recreational amenities added to a home that can raise liability concerns (and your insurance rates). In any yard where there are hazardous or potentially hazardous objects, your insurance coverage may be affected.
- Proximity to the fire department
If your house were to catch fire, how long would it take for the local fire department to get there? The faster they can get there and handle the situation, the better chance they have of minimizing the damage.
Every homeowner’s policy requires what’s called a Public Protection Class (PPC) rating. A PPC is rated between 1-10 (one being the best) and takes factors like proximity to the fire department, proximity and number of fire hydrants, municipal water towers, and even railroad tracks into account.
In some cases, you may be able to make some changes to help lower your rates, but never lie or intentionally exclude key information on your application. This could result in your coverage or renewal getting denied. Be honest with your agent, and they will help you find the right coverage and rate that works for your needs.
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