How Are Home Insurance Rates Determined?

  1. 37376 POINTS
    David G. Pipes, CLU®, RICP®
    Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
    A homeowner’s policy is based on your unique home. The first thing that the company will determine is the actual cost to replace the residence. The next thing that they will consider is the fire rating of the location. The company then computes a premium based on tables approved by the insurance commissioner in your state. There are optional coverages which might come into play and variations on liability limits. There are also underwriting concerns that will govern the acceptability of your individual home (presence of a pit bull or trampoline.)
    Answered on September 11, 2014
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