12 Oct What Factors Influence Your Home Insurance Premium?
Know what insurers look at when determining your home insurance premium.
When you take out a new home insurance policy or renew an existing one, the amount you are required to pay has to be calculated based on a number of factors. No two homes are the same which is why insurance premiums can vary depending on the property and your personal circumstances.
Here are some of the factors which could influence the price of your home and contents insurance!
Property structure and size – Larger properties which require rebuilding will undoubtedly cost more than smaller properties. Additionally, building materials may also be more expensive to replace or more difficult to source.
Your location – Rates for your home may be higher if:
- The home is located in a wildfire, tornado, or other natural disaster-prone area
- The neighborhood or town faces high-crime
- Building costs in the area are high
- There is no fire station in a 5-mile radius
Content value – The value of your belongings will be crucial in determining your insurance premium as it will need to adequately cover any cost to repair or replace items. Items such as fine art and high-value items may require a higher premium to protect them.
Risk factors – If you own a swimming pool, hot tub, trampoline, have a guest house or an ‘aggressive’ breed of dog, the risk of filing a liability claim can increase. With a higher risk of injuries, and therefore claims, your premium inflates.
Claims history– The more claims you have, the higher your perceived risk to insurers. This can not only lead to higher premiums but also the risk your insurer dropping your coverage or not renewing your policy.
Credit score – The higher a homeowner’s credit score, the lower their risk level. As a result, they are offered cheaper homeowners insurance rates.
It’s incredibly important to review your insurance coverage on a regular basis so that you can be sure that your protection keeps pace with the cost of your home. Are you ready to secure the right homeowners insurance policy for you and your home? Contact Kevin or Marci to get started today!