WorldExecutivesDigest.com | Factors That Will Affect Homeowners Insurance |Texas is the second-largest state in the country, trailing only Alaska in terms of landmass. And with 29 million people, it is also the most populated next to California. Texas is famous for its music, ten-gallon hats, and BBQs. The latter is reason enough for some people to move to the Lone Star State.
There are two things that you need to know when you are moving to Texas. First, the state does not collect property taxes. However, it does not mean that you are totally clear. Local government units will most likely impose a levy on your home. As such, the average rate in Texas is 1.83%.
Second, there are now laws that require you to take out homeowners insurance in Texas. You would not be paying a penalty in case authorities discover that your property is uninsured. It is not the same as having no vehicle insurance, for example, which could result in a criminal or civil lawsuit.
Those in the Gulf Coast in Texas can expect to pay higher premiums because of the risks involved. The fact is that they are living on the path of the hurricane. The latest was Hurricane Harvey, which left $125 billion in damage in its wake.
How Much is the Homeowners Insurance in Texas
According to Bankrate, people pay an average of $3,429 as homeowners insurance in Texas. The amount is one of the highest in the country. For example, the state sits at fifth place, trailing Oklahoma ($4,445), Kansas ($3,931), Arkansas and Florida, which have both $3,439 average annual premiums.
On the other hand, there is Hawaii with an annual premium of $449, California with $1,166, and Vermont with $1,212.
Factors that Impact Home Insurance
When you go to the insurance marketplace, you will get different rates from insurers in terms of your homeowner’s premium. For the most part, the price difference between competitors does not really vary that much.
But they will consider several factors when assessing your home. However, you will have a general idea if you answer these 10 questions:
- Do you own dogs? If so, how many and what type of breed are they?
- Do you use wood-burning stoves in your house?
- Have you had recent remodeling or renovation done to your property?
- Are you working from home? If so, do you have properties that are being paid for by your home business?
- Is your location on the path of the hurricane? Is it prone to flooding? How about neighborhood crime?
- What is your marital status? FYI, married couples have lower insurance premiums.
- How old is your home?
- Do you have a swimming pool or hot tub?
- What is your credit score?
- What type of deductible are you looking for?
A deductible refers to the amount that you pay out of pocket before the insurance can take over. The higher the deductible, the lower the premium. If you have little savings, you might be better off with a higher deductible to avoid taking a financial hit that could destroy your finances. Talk it out with your insurer to determine the type of insurance that is best for you.
Meanwhile, even if you have a low credit score, insurance companies are prohibited from rejecting your application. Though, you can expect to pay higher premiums as a result.
Note: Any questions on this article may be directly referred to the contributor.