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Which of the following actions would likely raise homeowner's insurance premiums? Building the home in the floodplain of a river Installing a monitored alarm system Living in a safe neighborhood with little crime Choosing not to install a swimming pool

Roger Moore

in Business

1 answer

1 answer

Justin Parker on March 29, 2018

The insurance is a coverage that evaluates the risk of a certain item/person. If that item/person is in good condition, your insurance will be lower because it is less likely that it will be damaged. It is for this reason that if you have a bad driving history, your car insurance is high (as there is a high risk). If you are going to install an alarm, live in a safe neighborhood or choose to not install a swimming pool that actually reduce your insurance.If you have an alarm, you are less likely to have things stolen (safer = less risk).Live in a safe neighborhood is more secure = less risk.Not the installation of a swimming pool means that your property is maintained to the same value (put a pool might increase), greater risk of someone drowning in the pool, or of hurting themselves. So by not building the pool, you will have a more secure environment = less risk.If you build your house in a flood zone, the likelihood of your home from damage from a flood is very very high, so you will have to pay more because there is an increase in the risk.

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