7 Facts Everyone Should Know About Home Insurance

Homeowners insurance is one of those things you don’t think about often- until you suddenly need it! In addition to your mortgage payment, property taxes, and interest, homeowners’ insurance is part of the “total cost” of owning a home, and is something you should take into consideration before making the investment in a home of your own. Here are some little-known but important facts about homeowners insurance that you should know when setting out to shop for your policy.

• Credit Counts! As you have probably already figured out by now, your credit affects every aspect of your financial life, and homeowners insurance certainly is no exception. A negative credit rating can adversely affect your premiums on home and auto insurance. According to a 2014 study by InsuranceQuotes.com, individuals with fair or median credit ratings tend to pay 29% more on average for home insurance than a person with excellent credit. And if you have poor credit, your premium will be a whopping 91% more on average- that’s nearly double! As with many other aspects of your life, it is worthwhile to get your credit healthy before embarking on a home-buying endeavor. Make sure to request free consumer credit reports on a regular basis to stay on top of any negatively-reported items that can affect your score.

• Location, Location, Location. If you live in a community with a fire department that is considered “highly rated,” you could pay lower insurance premiums. Additionally, properties situated close to fire hydrants can save you money on your monthly insurance.

• Fido might get you in trouble. If you have a dog, it may be harder to purchase comprehensive homeowners insurance. This is true if your dog belongs to a specific breed, such as pit bulls or Rottweilers, which has been red-flagged as a potential hazard. Also, if your dog has a record of biting anyone or attacking another animal, regardless of the circumstances, some insurers will refuse to sell you a policy, or may limit the type of coverage you may purchase.

• Check before you renovate. Not all home improvement projects are covered by your existing insurance policy. To avoid unpleasant surprises, make sure you consult your insurance rep before beginning any major renovations to make sure your addition or renovation is covered during the project, or if it is necessary to purchase additional coverage.

• Your lender may limit your deductible. Increasing the size of your deductible is a good way to save money on monthly premiums; however, your lender may limit the size of your deductible because they want to make sure you will be able to pay it in the event of property damage.

• Your policy cannot be cancelled without good reason. If your policy has been active for longer than 60 days, the insurance company cannot cancel the policy without good cause, including failure to pay the premium, committing fraud, lying or misrepresenting yourself on the application, or abandoning the property.

• Making a claim can really affect your rate. Depending where you live, your annual premium can increase by an average of 9% after making one insurance claim! Every state has a different rate hike percentage after one insurance claim, except for our great state of Texas, which prohibits claim-related increases after just one claim has been filed.

Frank Medina Insurance provides home insurance quotes from only top rated insurance companies. We proudly serve our clients in Wisconsin. Call us today at (414) 877-0777, or start a free quote online. Your home is the most important investment you will ever make- ensure that it is protected with affordable coverage you can trust!