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The Top Factors Insurance Companies Take Into Consideration When Insuring Your Home in Orange City

Finding the right home insurance to best meet your needs and budget is an important decision for homeowners. Many factors impact the cost of home insurance, so it’s a good idea to compare all of your options. Working with an insurance agency is a great way to compare the cost of insurance with a wide range of providers to ensure you find the best coverage available. You can also reach out to an insurance agency if you have a question about your policy or if you need any extra assistance.

Here is an overview of the most common factors impacting the cost of your home insurance in Orange City.

Location of Home
The location of your house is one of the main factors in determining the cost of your home insurance in Florida. For example, you will most likely pay more on your insurance if you live in an area prone to natural disasters, whether it’s hurricanes, wildfires, tornadoes, or other threats. Home insurance policies also tend to be higher in suburban places compared to rural areas, as homes usually cost more to build in cities. Insurers will also keep other factors in mind, such as how close your home is to a fire station. You can often receive a discount on your policy if you are less than 100 feet from a fire hydrant.

Replacement Costs
The replacement cost of your house is the amount of money needed to rebuild your home with the same construction materials. The value of the replacement cost is based on several figures, which include the age, square footage, number of rooms, and architectural style of your home. The price of rebuilding in your area is also factored into the replacement cost. It’s also important to know that the replacement cost is different from your home’s market value, as that number is solely based on how much your home will sell on the real estate market. Discussing all of these factors with an insurance agency can help you get a better understanding of the replacement costs for your home.

House Insurance Deductibles
A deductible is how much you will need to pay toward a loss before your insurance provider covers the remaining costs. Selecting the right deductible amount for your situation is a big decision. A higher deductible will help you save money on monthly premiums, but it will also cost you more if you ever need to file a claim. Typically, most insurance companies recommend at least a $500 deductible. Discussing your options with your insurance provider is important in helping you choose the best deductible that makes sense for your financial situation. You can also change your deductible at any time to better meet your needs.

Age and Construction of Your House
Another key factor impacting the cost of your home insurance is the age and construction of your house. Understanding the cost of rebuilding your house is critical in determining these expenses. Insurance providers often use a specific formula to calculate the cost of a rebuild. You can also reach out to your local contractors to determine the average building costs in your area. Typically, living in an older home will raise your insurance costs due to it often costing more to rebuild or repair these houses. Investing in upgrades for an older home is one way to lower these costs, whether it’s replacing a roof, installing new plumbing, or modernizing the electrical system.

Your Claims History
An insurance provider will also check out your claims history before offering you insurance. There is often a big correlation between making past claims and the likelihood of future claims, which is why your insurance will most likely be higher if you make frequent claims. The type of insurance claim also makes a difference. For example, filing a liability claim is often more likely to increase your insurance compared to a property damage claim due to the risk of a lawsuit. Avoiding any unnecessary claims on your home insurance is key to keeping your costs down in the future.

Location to Coastline 
Houses located near a coastline are usually more costly to insure compared to inland homes. You may even have a separate deductible for hurricanes due to the greater chance of experiencing these natural disasters. Purchasing flood insurance is often a good idea, even if your house isn’t in a high-risk zone for flooding. You can buy flood insurance with an insurance agency or reach out to the National Flood Insurance Program. Discussing your risks with an insurance agent is helpful in determining the amount of coverage you need if you live near the Florida coast.

Type of Dogs You Own
Many people don’t realize that the type of dogs you own can impact your home insurance. Some companies won’t even offer insurance for certain breeds of dogs, such as Rottweilers and Pit Bulls. Other insurance providers decide on a case-by-case basis that depends on the individual dog. You may even be required to sign a liability waiver for any dog bites to qualify for house insurance. It’s even possible for insurers to require pet owners to take their dogs to classes to change bad behaviors, or you may be required to put your dog in a cage. Shopping around for different policies is a good idea in making it easier to find an insurer if you own aggressive dogs.

Credit History
Insurance companies can also view your credit history to help determine your rates. Each insurance provider uses its own formula for calculating these costs. An insurance company will include numerous factors, such as your payment history, outstanding debt, credit history length, and your pursuit of new credit. Someone with poor credit will often pay much more for house insurance compared to someone with an excellent credit score. Making sure you pay your bills each month while paying off any major debts is key to improving your score over time, which can save you money on your insurance.

Home Remodeling
Choosing to remodel your home is a great way to give it a fresh appearance, such as upgrading your bathroom or kitchen. A newly remodeled home will often increase its value, and it’s important to make sure this increase in value is reflected on your home insurance policy. Reaching out to your insurance agent to discuss any updates to your home is key to making sure your home isn’t underinsured. Keeping your insurance coverage up to date is essential in helping you to stay covered in the event of a disaster. Updating your insurance policy may cost you more money now, but it can help protect you in the future.

Insurance Score
Your insurance score is similar to your credit score, as it can play a big role in the cost of your premiums. A low insurance score can even make it difficult for you to obtain a new policy. Fortunately, you can improve your insurance score in a variety of ways. These tips include not having any debt that’s in default, carrying a modest balance on your credit card, and never having a tax lien. Even being married can impact your insurance score, as married couples don’t usually file as many claims compared to someone that’s single. Limiting the number of credit accounts and avoiding too many hits on your credit report can also boost your insurance score.

Condition of Roof
A newer roof plays a key role in protecting your house from the outside elements. It’s always a good idea to contact your insurance agent if you recently replaced your roof. You can often save more money on your insurance policy by investing in a new roof. On the other hand, a leaky roof is a major risk that can lead to significant damage to your home. Some insurers won’t even provide you with insurance if your roof is in need of a replacement or serious repairs. Staying proactive by keeping your roof well-maintained can help you avoid repairs and further extend the lifespan of your roof.

Owning a Swimming Pool or Hot Tub
Building a swimming pool or hot tub near your home is a great way to relax. However, the drawback of a swimming pool or hot tub is that it will increase your insurance rate. You will need to purchase additional liability coverage in case someone is ever injured while using these facilities. An average home insurance policy will include a minimum of $100,000 of liability coverage, but it’s recommended for pool owners to increase this amount to $300,000 or $500,000. Typically, this will add anywhere between $50 to $75 to your insurance policy. You may even want to consider an umbrella policy for an added level of protection.

Contact Wellcovered Insurance to Learn More About Home Insurance
Wellcovered Insurance remains one of the most highly-rated insurance agencies in Florida. We partner with over 30 insurance carriers throughout the United States to ensure you find the best coverage. Our company also invests in the latest technology available to make it simple to compare all of the top providers for home insurance.

Creating the best customer experience is also our priority, as you can easily give us a call or visit our office. We will quickly give you an auto quote in only 15 minutes, and it only takes one or two business days to receive a home quote. You can also select numerous insurance options, whether it’s home insurance, condo, rental property, boat, auto, general liability, or something else.

We are one of the best-rated insurance agencies on Google Reviews, and we strive to stay active in the local community. Feel free to contact Wellcovered Insurance to learn more about finding affordable home insurance today!