HVA Knowledge Tip
Because Knowledge Is Power!
Today’s blog comes to us via David J Bonne, our VP
When it comes to insuring properties, whether it be your own home or rental properties as a landlord, you need to know this one thing in order to make sense of your insurance costs:
The better shape the property is in, the lower your insurance premium will be.
Here’s the logic:
Property insurance covers damage to the property and the interior from common perils such as water damage (not flooding), wind damage, fire and smoke damage, etc.…
· If your property has curling shingles on the roof, the chances of interior water damage are much greater, therefore you will pay more for your insurance through a company that factors that into their risk assessment. Other companies may just turn you down or demand repairs within 30 days in order to avoid cancellation.
· If your property has old electric or fuses instead of 100+ amp circuit breakers, the chance of a electrical fire are much greater, and therefore you will pay more for your insurance through a company that factors that in their risk assessment.
· If your property still has old fashioned plumbing that does not wear well and gets pitted and is prone to leaks, your chances of water damage will increase immensely and once again, you will pay more for your insurance through a company that factors that in their risk assessment.
· If your property has old non-insulated windows from the beginning of time, your chances of incurring frozen pipes and the ensuing damage from that will increase quite a bit. I’m sure you know what comes next.
These are just a few glaring examples as to why your insurance carrier makes these demands that you may or may not feel are unreasonable or none of their concern, but there are many more than just this.
Hudson Valley Agents has an insurance market for almost every type of property out there, from the preferred pristine property to a property with one or more of these risk multipliers mentioned above. Just keep in mind the costs are commensurate with the condition of the property.
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