Understanding How Insurance Companies Set Your Home Insurance Premium
Tell me where you live, and I’ll tell you how much your home insurance costs.
In this article, we explain the many things that affect your premiums, and the ways you can save while protecting yourself from unforeseen situations.
Location and Type of House
Your house’s location and type are the first things considered when your home insurance premium is calculated. It all depends on whether you live:
- In the city or the country
- In the suburbs or downtown
- In a historical area
- In a single family dwelling, a two-story house, or a bungalow
Protect Your Property
The value of your property and outbuildings or detached private structures affects your home insurance premium. Here are a few examples to help you understand the differences:
- If the cost of reconstructing your house is high, your premium will be affected.
- Adding endorsements,that is, additional coverage, also affects your home insurance premium. For example, if you want to insure grandpa’s stamp or coin collection, there is special coverage available that will affect the cost of your premium.
- Installing an smoke detectors or an alarm system connected to a monitoring center could save you money.
The route and distance from your local fire department is carefully observed in calculating your premium.
Your Responsibilities in the Event of a Loss
Remember that you are responsible for your claims. Your claim history is used in setting your home insurance premium.
For more information on home insurance or to get a home insurance quote, contact us.