In today’s economy, almost everyone has been forced to review all aspects of the family budget. Inclusive of such a review is considering the expenses associated with owning a home, especially since home ownership is typically the largest investment a family makes. The insurance costs involved in protecting your home and property are often not completely understood. Working with a licensed independent agent is recommended to secure the appropriate coverage to protect you, your family and your most expensive investment – your home! The following are some factors to consider when evaluating insurance coverage for your property:
- Home Size and Construction – The larger and more expensive the home, the higher the insurance premium. Brick or masonry constructed homes have lower premiums since these construction types usually reduce damage from wind and fire.
- Type of Coverage – If you own and live in your home, consider purchasing a Homeowner’s policy. This comprehensive policy provides bundled coverages that better protect your family. Dwelling Fire policies are intended for tenant occupied homes and typically provide lower levels of coverages.
- Location – Homes located closer to the coast and bodies of water are more exposed to wind and therefore have higher policy premiums. Exposures such tornadoes, hurricanes, and crime are considered in determining appropriate insurance premiums. Having a fire hydrant within 1000 feet of your home reduces your annual insurance premium.
- Safety Factors – Having dead bolt locks, fire extinguishers, and smoke alarms are suggested for all homes. If you have a local or central station burglar or fire alarm, a premium credit can usually be granted by the insurance company.
- Deductibles – The deductible is the amount that you the policyholder must pay before a claim payment is due to you. When you choose to bear more of the potential claim expense by electing higher deductibles, you qualify for a premium discount that reduces your annual insurance premiums.
- Roof Shape – Homes that have a hip roof shape (where all sides of the roof slope down toward the ground like a pyramid) are more aerodynamic and typically have less roof damage during windstorms. Premium discounts are available for hip roofs. Other types of roofs are not as aerodynamic and are more susceptible to roof damage.
If you rates continue to rise, talk to your Louisiana or South Carolina agent annually and review your policy coverages. If you do not have a Lighthouse policy and would like more information, visit our Agent Locator to find an agent in your community.