Ever wonder what dictates the rate you’re being charged for the insurance on your home? Every insurance company rates differently, but here are some factors your insurer could be taking into consideration.
- Marital Status – history shows married couples are less likely to file a claim, which means a married couple might get a lower rate than a single homeowner.
- Dog Breed – certain dog breeds are considered more dangerous and more likely to injure someone on your property, so your home’s liability insurance may cost more if you own a dog of a particular breed.
- Age and Type of Roof – newer and certain types of roofs hold up longer and protect your home better. That means that if you have an older roof or a roof of a certain material, your home could cost more to insure.
- Age and Structure of Home – older homes and those built with certain materials are typically harder and/or more expensive to replace and could result in a higher rate.
- Distance to Nearest Fire Station – the closer your home is to a fire station, the quicker they can get to you in an emergency. So if you live close to a fire station (or fire hydrant), your premium may be lower.
- Property Amenities – pools, hot tubs, and trampolines all raise the likelihood of someone getting injured on your property. Some insurance companies will raise the amount you’re charged for liability insurance on your home if you own items of this nature. Others may not even insure you.
- Claims History – studies show the more claims you’ve filed in the past, the more likely you are to file new claims in the future. The cost of previous claims is also important. The claim history on your home is probably one of the most likely rating factors your insurer is taking into consideration.
The deductible amount, replacement cost, and liability limit on your policy also play a part in your premium rate. These factors differ from others because you have some control over them when setting up your policy.
Remember, every insurance company rates differently so your insurer may not look at all of these factors and could be considering others not mentioned. To learn more about rating factors, talk to your independent insurance agent.