Call: 203-637-6655 or email – Kyle Shepard

The Inside Track

Controlling Future Home Insurance Costs

It used to be said that if you can afford the home, you can afford the insurance. But time and mother nature have put a dent in that old school thinking.

Here is why:

Current and future insurance rates are being driven by data, mostly claims but additionally data like your credit score as well. In regard to claims, there are some critical factors that are emerging that should command your attention when it comes to buying a home.

Flood Zone – if your home is negatively elevated in reference to flooding, you can expect to pay a surcharge to insure the property on both your homeowners as well as your flood policy.

Proximity to the Coastline – homes that are exposed to the wind by being coastal will reduce the number of insurance companies you can access and also be a 40% added premium to insure comprehensively.

Distance to a Fire Hydrant/Fire Department – Despite efficient fire alarm systems to address a fire, it has been identified that being beyond 1,000 feet from a fire hydrant or 3 miles from a fire department, without a water source, makes it virtually impossible to fight a fire. A lake, pond or dry hydrant to a pool may help, but it is best to look into this prior to going to contract.

Age of the Home – believe it or not, even with storm severity growing each year, the #1 claim submitted on home insurance policies is now water damage due to aging plumbing failing. There are leak detection systems you can install and should be considered if you are looking to purchase a home that is more than 10 years old.

Buying your first home in Connecticut, especially in these trying Covid-19 times is a big step. Making an informed decision is always the best way to take that step.

If you have questions about the future of your home insurance cost(s) call Kyle a call at 203.698.9342 or kshepard@shepardinsgrp.com.


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