There are dozens of factors that underwriters and actuaries look at when determining rates or premiums of home insurance policies. Insurance underwriters examine applications for insurance to determine if the applicant meets underwriting eligibility requirements. They also examine the records of existing policyholders to determine if they have excessive claims history or a frequency of late payments. In some instances, they may be required to terminate coverage by issuing a notice of cancellation. Read more: Insurance Underwriting Definition | eHow.com
A fence can help to lower your homeowner’s insurance by immediately decreasing the amount of vandalism or burglary claims submitted by the homeowner. As with most insurance claim situations, it is the unseen cost that is best understood versus experienced. Fences are a great protection in cases that could prevent homeowner liability. Underwriters may see a as a form of security similar to an alarm system and a wise insurance consumer will ask there carrier to consider it during the quote process. Two things that can significantly raise insurance rates are the presence of a pool or hot tub. It is an insurance requirement to enclose these with a POOL CODE FENCE. Fences lessen the chance of people from entering your property without your consent. It reduces yours and the carrier’s liability. If you have a trampoline you may also want to consider fencing it in to prevent people from using without your consent. These are all good examples where people have lowered their rates by simply adding a perimeter fence. In the market homebuyers should take an existing fence into account while looking at possible houses to purchase. These are specific costs that can be factored for insurance and installation need in before the purchase or sale of a house or property. Considering these hidden costs can save you money both directly, and indirectly. As a note, damage to fences is typically covered by homeowner’s insurance. Be keen to this if a falling tree hits your fence or it sustains other unforeseen fence damage. Contact your carrier to see if you are ‘covered’ when you forced to replace or repair your perimeter security. Be certain, as you will want to be mindful of your claims history when submitting any new claim. Wholeheartedly weigh the cost of replacing the fence versus the potential rate increase due to a new claim submission. It is wise to have current photographs of any existing fence on file for such instances Most insurance companies will have lower rates for those choosing to add a fence; however your rates will depend on your particular insurance carrier. There are some carriers that are more likely to lower your rates with the addition of a fence. This is something you should look into with your current insurance provider.
