There are many factors that affect the rates for homeowners insurance:
Homeowner (insured) - The insured's age, credit rating, loss experience, prior coverage will affect the premium charged for a homeowners policy.
Home location - Location is a very big deal. For example, a home located on the coast will be subject to a much higher premium compared to the same home located far inland due to the increased possibility of loss from wind or storm damage. Likewise, a home located in an area that has excellent fire protection (very close proximity to a fire station) will have a lower premium than the same home located in a secluded location very far away from fire protection.
Home Construction - A stick-built wood frame home is more expensive to insure than the same valued home constructed of fire-resistive materials due to the increased potential for catastrophic fire loss with the former.
Coverage Limits - Obviously a $500,000 home will cost more to insure than a similarly located/constructed $200,000 home.
Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
The basic rate is computed by evaluating a “standard” home. Anything in your home that is different affects your individual premium. Some common considerations include how close is the house to the seashore, a river, or a hillside? Is the house being properly maintained? Are there dangerous objects on the property such as derelict cars, trampolines or unfenced swimming pools? Has the house been the subject of recent claims? These and other items indicate to an underwriter that this home is different from the standard home.
Agency Owner, The Thomas G Sheehan Agency, 27 Glen Road Sandy Hook, CT 06482
Talk to your iInsurance Professional about your specific needs, but in general, there are a few basic factors that will affect both coverage and pricing on a Homeowners' policy. After an accurate address and location, probably the most obvious, is the dwelling coverage amount. This can be determined accurately by completing a Reconstruction Analysis. Once the dwelling amount is established, other factrrs are included namely proximity to a hydrant and fire services, age of the dwelling, additional security elements like alarm systems etc. Pricing is also affected if you insure your cars with the same company because some nice discounts may apply.
.JPG){kind=avatar}
Homeowner (insured) - The insured's age, credit rating, loss experience, prior coverage will affect the premium charged for a homeowners policy.
Home location - Location is a very big deal. For example, a home located on the coast will be subject to a much higher premium compared to the same home located far inland due to the increased possibility of loss from wind or storm damage. Likewise, a home located in an area that has excellent fire protection (very close proximity to a fire station) will have a lower premium than the same home located in a secluded location very far away from fire protection.
Home Construction - A stick-built wood frame home is more expensive to insure than the same valued home constructed of fire-resistive materials due to the increased potential for catastrophic fire loss with the former.
Coverage Limits - Obviously a $500,000 home will cost more to insure than a similarly located/constructed $200,000 home.