5 Features That Drive Up Insurance Cost

by Joan E. Diamond 08/04/2019

New homeowners often wonder why the insurance costs of their homes are on the high side. Even long-time homeowners might notice an increase in their home's insurance cost. The pressing question remains; "Why is my homeowner’s insurance so high and how can I reduce it?"

Every homeowner has a budget with which they run their homes. It will be a burden on their wallets to pay high insurance alongside other utility bills–energy bills, water bills, and the likes.

It is essential to know the critical factors that raise insurance cost. Even home buyers need to have this knowledge, so they are prepared for it beforehand.

Your home has many unchangeable features that contribute to the homeowner’s insurance cost. However, there are several ways to minimize the risks and reduce the cost of insuring the home.

Location

Location is one of those things about a home that can't be changed, and it has a significant influence on how much you pay for insurance. If your home sits close to beaches, it is prone to flooding and other natural disasters that are water-inclined. A house in a 'safe zone' will not pay the same insurance as another in areas prone to flooding. This aspect is one thing the insurance company considers.

Structure of your home

Another thing to consider when testing a home's risk is the structure and build of the house. Older homes are seen as high-risk structures by insurance companies. Age will require them to quote a higher homeowner's insurance cost or outright refuse to insure the property.

Also, houses built with wood are susceptible to the devastating spread of fire which increases the risk to such property. The higher the risk, the higher you pay for insuring the home.

Condition of the roof

The roof is perhaps the most critical part of a home. It is usually the largest and suffers from all the exposure to environmental conditions. Roofs have a life span, and it costs a lot to replace them. In older houses, chances are the roof will need a replacement soon and this tells negatively on your insurance.

Home safety

Where a home is located will always determine the cost of insuring it. If your home is in a neighborhood that experiences frequent burglary, homeowner’s insurance cost will be high. It will cost you more to protect your home if it's in an area prone to natural disasters like earthquakes, flooding, tornado, etc.

About the Author
Author

Joan E. Diamond

BUYING A HOME ON HILTON HEAD ISLAND? START HERE Welcome to my website. I am Joan E. Diamond, a Hilton Head Island Real Estate Professional, who has been selling condos and luxury homes on Hilton Head Island since 2010. In 1973 we came to Hilton Head as resort guests and were touched by its beautiful beaches, live oaks, bike trails, tennis and golf facilities, and the friendly family charm of the Low Country. We returned every year until 2006 when we made Sea Pines on Hilton Head our permanent residence. We have watched the island grow and know it well.

I became a realtor on Hilton Head because I love the island and its lifestyle and enjoy showing people this wonderful place to live. I can advise you on restaurants, schools, boat rentals, and places to play golf and tennis. And when you are ready, I will show you condos, and homes in a wide variety of prices. So you, too, can call this island home. 

In 2018 I was certified as a Luxury Home Marketing Specialist and awarded Million Dollar Guild recognition based on outstanding performance in our Hilton Head market.