5 Factors That Can Affect Homeowners Insurance Premiums

Apr 10, 2020 2 min read

While most people know they need homeowners insurance to protect their home, they may not realize their coverage needs can change with certain events, such as changes to their home. Depending on the updates, making changes to your home can affect your homeowners insurance premiums. Keep tabs on these additions so you know when you need to call your insurance agent for a SuperCheck® to make sure you have the coverage you need.

1. Updates to the Backyard

Are you ready to get started on those backyard renovations you’ve been planning? Some outdoor projects, like landscaping, can raise the value of your home. But have you thought about the effect outdoor projects can have on your homeowners insurance policy? In some cases, outdoor changes can make your home safer — but sometimes they pose liability issues.

While most home insurance policies cover minor backyard updates, it’s always a good idea to check with your agent to make sure you’re in the clear. Common backyard renovations include:

  • Building a shed
  • Repairing steps
  • Pouring pavement
  • Expanding your patio
  • Adding exterior electrical
  • Installing a new fence
  • Purchasing a big trampoline
  • Putting in a pool (in-ground or above-ground)
  • Building an outdoor dog kennel
  • Building a fishpond

By making updates that improve the safety of your home, you may be eligible for new discounts.

Keep in mind your homeowner’s insurance policy may not fully cover surrounding buildings on your property, so if you’re planning on adding a building, you may need to purchase additional coverage.

2. Renovations

Your new home addition may not be “life changing,” but it is “lifestyle changing,” and your agent should know about it. If you’re planning to enclose a porch, add a bathroom, upgrade your kitchen, finish your basement or add an addition, you may need to increase your coverage amount on the house. That’s because these types of home additions will likely raise the value of your home and need to be factored into your homeowners insurance policy. If you do not increase the coverage, you could be vulnerable in the event of a partial or total loss of your home.

3. Updating Indoor Home Systems

After replacing a home system such as a furnace, air conditioner or water heater, you may want to expand your homeowner’s insurance. These expensive updates can affect your home insurance rates and save you money if they break down. Consider including Residential Equipment Insurance, which will protect your home systems should they malfunction. After you’ve made large purchases for your home, a SuperCheck® with your agent can help you reevaluate your coverage to make sure you’re protected.

4. Installing a Home Security System

If you’ve been planning to add a security system to your home, don’t forget to let your insurance agent know in case you qualify for a discount on your home insurance premium. Your insurance company could recognize the fact that you’re increasing the safety of your home and decreasing the likelihood that you will need to file a claim.

5. A Child Going to College

Did you know that your homeowners insurance can extend to cover your child’s belongings if he or she lives in a college dorm? A SuperCheck with your agent can help you find out if your homeowner’s policy can protect your child’s belongings at college or if renter’s insurance is the way to go.

Keep up With Life’s Changes

It’s important to keep your homeowners insurance in mind when life or home changes happen, big or small. Even if none of these changes are in the near future, it’s still a good idea to check with your agent once a year to make sure you’re protected and getting the discounts you deserve. A SuperCheck is a free yearly service that can help ensure that you don’t have any gaps in your insurance coverage. Get in touch with a Farm Bureau insurance agent today.

1Some discounts may not​ apply in all states.

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