Once you own a home or property it is a helpful idea to maintain and improve your property to increase its ability to minimize and avoid damage altogether. Such ideas include installing security systems or having fire extinguishers in the kitchen and near fireplaces. However it is best to be preemptive when it comes to keeping maintenance costs low and insurance premiums affordable.
The first step to keeping insurance costs affordable takes place even before buying your property. Make sure to look into the following:
Location. We've
heard it time and time again, location, location, location! Though
it's usually used in a good sense, when it comes to keeping insurance
costs low some of the "best" locations have higher insurance premiums
and deductibles. For example, homes near the coast will have higher
insurance premiums due to its increased risk of hurricanes, wind,
and water damage. But wherever there is a higher occurrence of
earthquakes, tornados, hurricanes, or any other type of natural
disaster, the higher the insurance premium will cost for a property
located there.
Construction
of the house. The
way a home or property is built is extremely important. By owning
a home or property that it is built to minimize possible
disaster damage, you will see a more affordable insurance premium.
For example, if you live in an earthquake region (such as the
Bay Area), take the extra time to find out whether or not the
property is current on building codes, which now have earthquake-resistant
guidelines.
Age
of the house. It
is not a surprise that the older the house is the higher the
insurance premium. Neither is it a surprise that your insurance
policy is not totally dependent on the logical fact that the
house is older. It is also dependent on the fact that
older homes tend to be built with more expensive materials such
as ceiling
mouldings and wood floors, which as a result lends to a more
expensive tab if the features require replacement.
Get
a home inspection. An
inspection will do the following: inspect the general condition of
the house and show you where the potential problems or weaknesses appear,
whether the property is in need of a new roof or
it
has termite
problems. If you are present with the inspector during his routine
process, ask him or her to check for previous water damage, termite
activity, and if possible, the property's electrical and plumbing systems.
Check
the plumbing, heating, and electrical systems in the house. This
is one of the most expensive aspects of a property because when
you need to replace the parts, not only do you replace the parts
but you also have to demolish walls and perhaps even flooring
in order to reach the systems. These systems will require replacement
with age; the older the system the higher the risk of possible
fire or water damage. The more recent your electric and plumbing
systems are, the lower you will see your insurance premium become.
The
condition of existing pool and wood stoves. If
you have either feature on your property your insurance
premium will increase due to your increased liabilities. These
amenities also increase the possibility of fire or water damage
to your property.
Check
for past insurance claims on the property. This
is probably one of the more telling methods of finding out the
truth behind your property's maintenance. Once you find out about
possible repairs and replacements that have taken place, you
have the opportunity to check whether the work done at that time
was done correctly. Knowing the history of your property's insurance
claims will not affect your insurance premiums but it is important
that you know exactly what happened with your property and what
you should possibly look out for in the future.
Proximity
to a fire department. Homes
and properties closer in proximity to a fire station as well
as being located closer to hydrants will cost less to insure.
