16 Jun Features that Prey on Home Owners’ Pocketbooks
In the search for a new home, there are those features that do their part to lure in almost any home buyer. Fun amenities such as swimming pools or trampolines, charming accents such as antique or vintage features or even just a being a big, beautiful home are all factors that can “wow” a buyer into a purchase, but a more seasoned buyer might think twice about any home that has these attributes.
These seemingly wonderful aspects of a home can wreak havoc on a home owner’s pocketbook in insurance rates and upkeep. Here are a few features to reconsider in your home search:
Backyard Fun Features
Home amenities such as swimming pools and trampolines are great for keeping the kids entertained all summer long, however they can really add up in cost for insurance and upkeep and, in the end, may not be totally worth it. Swimming pools carry a high price tag, not just when they are installed, but to insure and maintain over the years. Due to the high rate of drowning and water-related injuries, home owners with pools are forced to increase the limit of their liability insurance coverage by as much as three times those without.
In addition to liability coverage, many pools are required by insurance companies to have certain safety measures such as locking fences, which can be rather expensive to install. Throw in the cost for cleaning supplies, chemicals and general repairs, and a pool turns out to be a pretty hefty investment.
Another backyard feature that insurance companies abhor is the trampoline. According to the U.S. Consumer Product Safety Commission, nearly 100,000 trampoline-related incidents are reported every year. Although a specific policy may not be required to cover trampolines, they are considered “high-risk” items and incidents may not be covered by traditional home policies.
Sizeable Vintage Charm
Homes with vintage features or vast square footage can appeal to home buyers with their charm, but the cost to maintain and preserve that charm can be a bit overwhelming.
A well-preserved historical property can be a great find for any real estate hunter, but if certain aspects of the home haven’t been updated with the rest of the home chaos can ensue. Electrical systems that are more than 10 years old can malfunction and cause fires. Similarly, out-of-date plumbing can lead to disastrous water damage. A home that contains all or even just a few of these risks can lead insurance carriers to charge more to cover these properties.
Much like insuring an older home, larger homes carry heftier price tags in insurance as well. If there is more to your home, there is more to replace in the event of some kind of disaster. This means that the dwelling coverage, the coverage provided under your homeowners policy that provides funds to rebuild structural elements of the home, will have to be increased in order to make sure that everything can be properly rebuilt.