Are you a New Home Owner; or thinking of becoming a Home Owner?
Owning a home comes with lots of responsibilities, but it is a worthwhile investment—especially if you have a home owner’s insurance policy that is designed to protect such an investment.
There is always the question of how your policy will be calculated. Your insurance agent will ask many questions, but here are a few important factors that will shape the cost of your policy. Understanding these factors can also help you to make better decisions when you buy a home in the future.
What kind of home?
1. Construction type: Fire-safe materials like masonry are cheaper to insure than wood.
2. Roof type: Fire-retardant asphalt or metal may be cheaper to insure than wood shakes.
3. Age of the home: Newer homes may be cheaper to insure than older homes made with materials that are no longer available.
4. Size of the home: Smaller homes may be cheaper to insure than bigger homes.
5. PPC (Public Protection Classification): This is a 1 to 10 measure of the proximity of your home to a fire station, hydrant, police, etc. A “class 1″ is the best; a class “10″ is the worst. A Class 1 home will be cheaper to insure than a Class 10 home.
Who lives there?
1. The number of primary inhabitants: Larger households mean higher potential liability, and therefore may be more expensive to insure.
2. Pets: More pets mean higher potential liability. In addition, dangerous pet breeds with bite history may increase rates.
1. Area claim history: If your neighbors file lots of claims, it can make your premiums higher.
2. Personal claim history: You are likely to get cheaper rates if you have had fewer claims in the past.
3. Previous owners: If the previous owners had a history of claims, or there are unresolved causes of claims, you may pay higher for your policy.
1. Owner’s credit score: Generally, there is a trend that shows that people with lower score file more insurance claims, and therefore may pay higher rates.
Safety and security
1. Security alarm & Fire alarm systems: Monitoring and alarm systems help decrease rates.
2. Deadbolt locks: Quality access control devices may help reduce your rates.
3. Neighborhood crime rate: An area with higher crime rates will cause a higher cost of insurance.
5. Attractive nuisances: Swimming pools, ponds, machinery, trampolines, playground equipment, increase liability potential. This can increase insurance costs.
REMEMBER! We understand every home is a unique investment, so we welcome you to visit or call us for some advice before you decide on an insurance policy for your home.