Home insurance policies differ from person to person. There are determining factors that influence your home insurance premiums. These factors can include:
- Claims history – Your insurance company will assess claims you’ve made in the past to determine your premium.
- Marital status – Married individuals typically file fewer claims than single individuals. If you’re married, you usually have lower premiums.
- Home – Your home’s value, age, and renovations can contribute to your premium rates.
- Location – If you live in a high-risk area, your premium rates are likely higher.
Another key component of premium cost is your policy. The following policy factors have the most significant impact on your premium costs:
- Type of coverage – There are three types of coverage: actual cash value, replacement cost, and extended replacement cost. Each option could affect the cost of your premium due to what it covers.
- Limit – This is the maximum amount of money your insurance company will pay in the event of a loss. Generally, the higher the limit you choose, the higher your premium.
- Deductible – This is the amount of money you pay out-of-pocket before your insurance company begins to pay the remaining loss. Typically, the higher your deductible, the lower your premium.
- Additional coverage – This is for certain items or circumstances not covered by a standard home insurance policy.
For more information and tips on how to reduce your premium costs, contact us today.
