Here are the critical factors that insurers look at to determine your home insurance premium.
The cost of homeownership continues to rise in the United States. Though the continuous increase is a fact, it’s often unclear why most homeowners pay a different premium than the family living next door. Insurance carriers take into account many factors when determining the premium for an individual homeowner. Smart homeowners know what these factors are and use this knowledge to shop around for the best deal and manage to lower the cost.
Age of the house – Newer homes typically have fewer maintenance issues. Insurers may require upgrades to systems such as wiring or plumbing before insuring an older home.
Amount of coverage – The higher the required coverage amount for your home and all of its contents, the more costly your premium will be.
Location – Expect to pay a higher premium rate if you live in an area prone to natural disasters or with high crime rates.
Previous claims – The frequency of your claim record will translate into higher rates. Carefully evaluate every claim before submitting it for reimbursement. Preventative maintenance will prevent larger and more costly ones in the future.
Credit score – If you have worked hard to maintain a high credit score, you may be offered a discount on your insurance policy. If you have a low score, you may expect to pay a higher premium.
Deductible amount – The general rule of thumb for homeowners insurance policies is that the lower your deductible, the higher your premium. A higher deductible could reduce your premium costs by up to 25 percent – but this does mean a higher out of pocket cost should you need to file a claim.
Are you looking for an ideal home insurance policy that’s tailored to your needs? Visit the independent insurance professionals, Perry & Carroll, for all of your insurance needs in Elmira and neighboring cities in New York.