Why Might Home Insurance Rates Increase?

Owning a home is a good long-term financial decision.  While it can be a good idea to own your own property, it is also a very expensive asset that needs to be protected by home insurance.  When you have a home insurance policy in place when you buy your home, you may notice that your rates increase over time.  There are several reasons why Newark, NJ homeowners may see their home insurance rates increase.  

Claims Filed

One of the main reasons why your insurance rates will increase from one year to the next is that you could have filed a claim in the prior year.  Whenever you file a claim on your home insurance policy it will make you appear like a riskier customer going forward.  The home insurance provider will then increase your rates to compensate for that rate increase.  

Aging Home

Another reason why your rates will increase is that your home is getting older.  Older homes tend to provide more risk to insurance companies.  As your home gets older, the likelihood that you will file a claim will increase.  Because of this, the insurance company will increase rates to compensate.

Change to Environment

Home insurance companies are frequently analyzing changes in weather trends, floods, crime, and other expense hazards.  If your home is suddenly considered to be located in an area that poses more risk than before, the insurance company will likely increase your home insurance rates to offset the increased risk.  

For those that are in the Newark, NJ area and are seeing an increase in home insurance rates, contacting the E.S.T.I.R. Inc. could be a great option. E.S.T.I.R. Inc. will be able to help you build a great policy that meets your needs and also comes with a fair rate.  

Why You Should Make Sure Contractors Have Contractors Insurance When Hiring One

Prior to hiring a contractor, it is important that you make sure that a contractor has contractors insurance. If they do not have this type of insurance and they make a mistake or injure themselves on your property, it could be detrimental to you. At E.S.T.I.R. Inc., serving the greater Newark, NJ area, we want you to understand why this type of insurance is so important. Here is what you need to know about contractors insurance. 

What Contractors Insurance Is

Contractors insurance is primarily designed to help cover the work a contractor does on your home or property. If the contract makes a mistake and it damages your home, or if the work needs to be repaired due to faults, the insurance covers the damage and repairs that are needed. In addition to this, contractors insurance also covers the contractor in case they are injured while on your property. 

The Importance of Ensuring Contractors You Hire Have Contractors Insurance

If a contractor doesn’t have contractors insurance, they can come after your homeowner’s insurance if they are injured on your property. Additionally, you may have to pay out of pocket if they damage your home and do not have the right type of insurance to cover it. As such, it is important to ensure they always have contractors insurance before hiring them to complete any work. 

Contractors insurance is important to both the contractor and the homeowner utilizing the services of the contractor. If you are a contractor without contractors insurance, homeowners may be wary about hiring you. Contact E.S.T.I.R. Inc., serving the greater Newark, NJ area today to learn more about obtaining this type of insurance policy.