Realty Executives Midwest
Homeowners insurance includes many myths and preconceived notions that can make the home buying process confusing and intimidating for first-timers. However, demystifying homeowners insurance may be easier than you think. Take these five common home insurance myths into consideration before buying your first home to help ensure a smooth process.
Myth #1: The surrounding neighborhood doesn’t affect the price of home insurance.
Contrary to popular belief, the cost of a home’s insurance premium is influenced by its surrounding area. Each neighborhood has a record of multiple factors that insurance companies take note of, including prior insurance claims and crime rates in the area.
Based on statistics provided by the FBI, the state, and other departments, each community is given a grade by insurance companies. The frequency of crimes, like burglaries and vandalism, within a community is compared against the city’s population. Neighborhoods with lower grades are considered higher risk, and homes within these areas will often have higher premiums.
Myth #2: External home fixtures don’t affect the price of insurance.
The physical structure of a home isn’t the only factor involved in home insurance. When it comes to calculating premiums, insurance companies consider every potential risk on the property. Homes with trampolines and swimming pools carry a higher risk of claims due to injury or property damage and are subject to higher premiums.
Dog owners may also be surprised to learn that they could face higher premiums. Although many domesticated dogs are friendly, insurance companies pay close attention to the risk of bites and other injuries.
Myth #3: Older, cheaper homes will have lower insurance premiums.
Though an older home may have a lower sale price, it may have a much higher insurance rate. Older homes are considered high risk to insurance companies for many reasons. Homes built in the ’80s and before may have outdated plumbing, and water damage and leaks are among the most common home insurance claims.
Another concern with older homes is the wiring system. Older homes may have aluminum wiring installed, which is susceptible to fire. Outdated wiring systems also may not be up to current state code, which can further drive up the price of a premium.
Myth #4: Homes within the same neighborhood will have the same premium.
Though the neighborhood a home is located does influence its premium, many factors could cause one house to pay a vastly different amount than even the one next door. For example, brick houses are at lower risk of fire damage than homes with wooden frames. However, homes with fiber-cement siding are fire resistant and have an added benefit of being termite proof.
It’s important to note that homes within earthquake-prone zones are evaluated differently. Brick houses are more prone to damage from earthquakes and will pay higher premiums than homes made of other materials within these areas.
Myth #5: Once a premium is calculated, the price is fixed and can’t be changed.
A homeowner has plenty of options to reduce the cost of their home insurance premium. Updating the roof to hail-resistant shingles, for example, will impress an insurance company. Additionally, installing security features such as a fence or alarm system will decrease both the risk of claims and the cost of your premium. Installing a sprinkler system to reduce the risk of fire damage is another way to make an insurance company happy, and they’ll reward you — by lowering your premium.
Now that you are armed with insider knowledge about the way homeowners insurance works, you can begin the hunt for your first home with confidence. If you have questions about homeowners insurance or are interested in quotes, an independent insurance agent can help you. Visit trustedchoice.com to get matched up with an independent insurance agent today, so they can help you get started on your journey.
Article Source: Realty Executives International
Realty Executives Midwest
1310 Plainfield Rd. Ste 2 | Darien, IL 60561
Office: 630-969-8880
E-Mail: experts@realtyexecutives.com
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1310 Plainfield Rd. Ste 2 | Darien, IL 60561
Office: 630-969-8880
E-Mail: experts@realtyexecutives.com
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On Tuesday, April 23, 2019, the Rotary Club of Darien held their annual “Taste of Route 66” fundraiser benefiting their “Food for Kids Program” which provides nutritional meals to food-insecure school children on weekends during the school year. This supports the child's nutritional, mental, and well-being needs, so they can focus on learning.
Joan Wayman, Darien resident and real estate Broker with Realty Executives Midwest in Darien, takes a huge part in organizing this event, along with others throughout the year. This year, the Darien Rotary team raised over $31,000 during the “Taste of Route 66” event, all of which will be donated to the program and serve a HUGE part in helping continue the ongoing efforts of the “Food for Kids Program”.
Jana Pinc, Managing Broker/Owner of Realty Executives Midwest, was also in attendance and stated, “I am so happy to be able to contribute to this very important cause. I feel humbled by Joan's efforts, and would like to applaud her and the rest of our team who showed their support this evening. As always, we’re grateful be able to take part in local fundraisers because we feel honored to give back to all of those in the community that support us with their business."
While this event is their biggest of the year, the Rotary Club of Darien is regularly involved with the “Food for Kids Program” because it requires a weekly commitment in order to succeed. Every week, volunteers get together in order to pack lunches for the kids. If you’re interested in participating, feel free to reach out to Joan Wayman directly.
Realty Executives agents are real estate experts. They have the education and expertise you need to navigate through the process of buying or selling a home. From listing at the right price to making the best offer, our Executives have witnessed the best - and most regrettable - decisions homeowners and homebuyers can make. Every day, they are immersed in every aspect of real estate that includes comparable home price analysis, property surveys, credit reports, open houses, HOA agreements, lenders, title companies, homeowners’ insurance, walk-throughs, terms of sale or purchase, repairs, concessions and closing documents. Let our accomplished Executives help navigate you through the process of buying or selling a home.
