Factors that Affect Home Insurance Rates in MA

mortgage13There are many factors that affect home insurance rates in MA. They include not only details of the home itself but also information on the homeowner. Below are a few key factors to be aware of whether you are buying a new home or are already a home owner.

Details of a Home

Insurance companies will evaluate many different characteristics of a home. Newer homes are often cheaper to insure than older ones since they contain more modern safety measures and materials. Updated plumbing, electrical, and HVAC systems can minimize the risk of fire and other issues. Fire resistant materials, such as brick, can also lower the price of insurance. Custom home features, on the other hand, can lead to higher insurance since it increases the replacement value of a home.

The location of a home determines the inherent risks of fire, burglary, natural disasters, etc. Insurance companies will often ask how close a home is to the nearest fire station or fire hydrant. The ability to quickly respond to incidents such as fire will reduce the damage caused to a home, which can reduce the dollar value of any claims filed.

Personal Information

Insurance companies will evaluate two important pieces of personal information. The first is a homeowners history of filing insurance claims. In the eyes of insurance companies, individuals with a history of filing claims are more likely to file future claims. Therefore, these individuals will be charged a higher premium for insurance. In some cases, they can even be denied coverage.

Credit scores are also considered. Statistically, people with higher credit scores submit fewer claims. They are therefore less risky to insure and will receive lower insurance rates.

Importance of Understanding the Factors that Affect Home Insurance Rates in MA

Understanding the factors that affect home insurance rates in MA will help you save money. When searching for a home to purchase, be sure to get an estimate of what it may cost to insure it. This can play a big role in your monthly expenses and in the affordability of a home. If you are already a homeowner, consider not filing claims against your home insurance policy unless the damage is significant. Filing small claims can end up costing you much more in the long run that simply covering the cost of a repair yourself. Also, be sure to continually work on improving and or maintaining your credit score. Keeping all of this in mind can help save money on your home insurance.