How Your Home’s Build Affects Insurance Costs

Why Do Certain Construction Elements Impact a Home’s Insurance Premium?

When buying a new home, prospect homeowners tend to look at a few key elements. Price, location, size, and proximity to amenities are usually top of the list. But what about the home’s construction elements? Its heating, electrical, and plumbing?

Some construction elements have a role to play in your insurability and insurance costs. And since most (if not all) homeowners will need to have home insurance, these items are worth paying attention to. Here’s why certain construction elements in your home may play a role in impacting your insurance premiums.

“Unsafe” Construction Elements May Raise Home Insurance Premiums

Certain construction elements or materials can impact home insurance costs because insurers interpret those items as likelier to result in damage, or because they’re costlier to repair. Sometimes, renovating your home to remove these elements or upgrade them can result in a reduction in insurance costs.

The following construction elements may be rated higher, depending on your home and your insurer:

• Poly B plumbing
• Knob and tube wiring
• Aluminum wiring
• Copper wiring
• PVC piping
• Vinyl or aluminum siding

This is just a list of some of the elements that could result in a higher rating for your home insurance. Each insurer will have a different list (or none). Note that rating certain construction elements higher isn’t a rule across all insurance companies, either. Some of our carriers will have different rulings for construction elements, like Max Insurance. Home insurance policies will vary from provider to provider because each one approaches its underwriting differently.

Newer versus older homes

Some construction elements are rated higher simply because they’re outdated and generally outdated can equate to more maintenance-related claims and issues. Overall, older homes typically pose higher risk to insurers since they may not be built to modern building codes, may be less structurally sound, and are likelier to fail.

This isn’t to say that all insurers will rate older homes higher than new homes. Some insurers won’t take into account a home’s age in its overall risk for damage, but many will. In fact, some insurers will incentivize homeowners to purchase newer homes or even remodel by offering discounts.

Home Maintenance is Important Regardless of a Home’s Age

Regardless of the age of your home, it’s imperative for any homeowner to invest in regular maintenance. Scheduling repairs, doing regular inspections, fixing any pipage or wiring that is starting to fray, winter preparation, and so on are all important elements of being a good homeowner. A home that’s been lived in for longer might require more maintenance than a newer one but doing your due diligence can make a tremendous difference in avoiding those costlier damages.

Working with an insurance broker, regardless of your home’s age or its construction elements, is sure to find you a plan that works for your needs and the house that you live in. They can match you with a carrier who offers the best coverage for the best price.

Questions?

Contact us today to learn more!

Your Insurance Broker,

Costen Insurance

Note: thank you to our friends at MAX Insurance for providing the content for this post!