Homeowners Insurance During Construction

Homeowners Insurance During Construction

Business insider reported New Jersey as the top-ten most expensive state to buy a home. The median price of a home, mortgage interest rates, and real estate tax rates are higher in New Jersey than in most states. Therefore, to save your pockets from ripping off due to a loss event and to bring down the premium rates in your home insurance quote in New Jersey, here are the factors you should consider.

Factors Affecting Homeowners Insurance During Construction

If done the right way, home insurance can easily fit your budget. Below are the major factors that affect your home insurance quote.

  1. Location – which city or county is your home located in?
  1. Value of home – the building structure, construction materials, age, and condition of your home.
  1. Weather – the weather-related risks such as hurricanes, floods, and more.
  1. Frequency of special events – for instance, how often do wildfires affect your area?
  1. Crime rates – what’s the crime rate in your neighborhood?
  1. Local emergency response time – how quickly can you get emergency help from the police and fire departments?
  1. Claim history – have you made insurance claims before? How many times? The higher the claim rate, the higher the cost.

Moreover, you might be interested to find out Homeowners Insurance Effective Date to find out how to save on your policy premium. You can also read our insurance blog to read more on this.

home insurance quote philadelphia
homeowners insurance during construction

Does Your Neighbor’s Claim Rate Affect Your Premium? 

The short answer is YES.

The insurance claims by people living in your zip code area can drive up your cost. For instance, you live in a neighborhood with high burglary rates. Luckily, you haven’t been a victim yet, and your claim record is clean. However, your neighbors have frequently registered insurance claims. Naturally, the neighborhood indicates having a high crime rate, leading to higher home insurance premiums.

Remodeling for Home Insurance Quote

If the house you purchased had been recently remodeled or if you’ve planned to upgrade a certain space of your new home, your insurer is likely to quote a higher premium. Whether you’re installing a new roof or remodeling your living area space, the value of your home increases. As such, you need more extensive home insurance coverage, leading to a higher premium.

Further, if you have a swimming pool or trampoline on your home premise, you will need additional liability coverage than regular. That’s because the possibilities of pool-related accidents and events leading to injuries may translate to a higher payout on your insurer’s end. Hence, these attractive nuisances increase your insurance costs.

The home security system

The easiest way to bring down your premium is via home security systems. As the basic principle of insurance revolves around “higher the risk, higher the premium,” your insurer rewards you with policy discounts for installing home security systems. All you have to do is replace your regular locks with deadbolt locks, or install CCTV, and so forth, and you’re already eligible for discounts.

Therefore, you can kill two birds with one stone via home security systems—You add a layer of safety to your home and you save money for keeping your home safe.

In addition to the above-mentioned factors that affect your home insurance rates, make sure to explore the exclusions and endorsements that personalize your home insurance policy.

For a free house insurance quote from top insurers in New Jersey, get a quote today!

Furthermore, know how successful insurance agency maintains a good agency management system and insurance agency management systems. Also, know how to use insurance software to speed up your work form here.

home insurance quote philadelphia