Protect the largest investment you will probably ever make
by obtaining an affordable home insurance policy from a company
you can both trust and love. OnlyInsuranceQuotes.com has made
it fast and easy for you to receive quotes to buy home insurance
online by partnering with the best homeowners insurance carriers
in the nation.
Rates are determined based on a number of factors that are
related to the risks a company will take in order to insure
your property or household possessions. Listed below are some
of the factors that contribute to the amount you will pay
for a typical premium.
Factors in Determining Premiums
- Type of Coverage
Every insurance company will give you the option of choosing
a basic insurance coverage plan or a policy that is more
comprehensive. State insurance departments do regulate rates
somewhat, but there is no minimum requirement for house
insurance established by the government. However, if you
have a mortgage on your home, it is likely that your mortgage
provider will require you to carry a homeowners insurance
policy to protect their investment in your loan.
- Type of Home Use
Many people use their homes for more than just their primary
residence. If you rent out a portion of your home to someone
else or if you have a business that is conducted out of
your home, your insurance company will take that into account
when insuring the building. They will also want to know
if you have any plans to alter the structure by either adding
onto the existing home or building new structures on the
same premises, like a separate garage, a large shed or a
workshop area.
If you have a swimming pool onsite, they will also want
to be aware of that as many times a pool and its surrounding
area will comprise more than 10% of the homes total value.
- Location
The state, city, and even the neighborhood in which you
live can be a large factor in the make-up of your premium.
Insurance companies will be able to see the number of claims
that have been made where you live and assess the risk that
they perceive to be in the area. Living in the city versus
out in the country can have a dramatic affect on your rates
as crime rates in the city are typically higher than those
in the country.
- Square Footage and Elevation
Probably the largest factor of determining premiums lies
in the size and look of your home. An insurance carrier
will look at the cost of replacing your home. Building materials
and their replacement costs become a factor as well as the
square footage and elevation (outward design or look) of
your home. The bigger the home and the more intricate the
elevation, the larger the premiums you can expect to pay.
- Water Accessibility
Most homeowners insurance providers will want to know how
close you live to a water source in the event of fire. If
you live in the city where there are fire hydrants on most
every corner, you will show less risk that someone who lives
in the country without immediate access to water.
- Heating Instruments
Gas furnaces and electrical heating units are less risky
than heat that is produced from oil tanks. If your home
is heated by oil, you will pay more for your premiums.
- House Wiring
The design and wiring in your home can be a factor in determining
your rates. If your home is equipped with breakers, instead
of fuses, you will pay less. The age of your wiring will
also play a part, simply because older types of wiring can
increase the chance of fire in the home.
- Fireplace
If you have a wood burning fireplace in your home an insurance
company will have a perceived risk of the likelihood of
a fire in your home and your rates will be higher than someone
who has either a gas or electric fireplace installed.
- Roof
The age of your roof can play a part in higher premiums.
The newer the roof, the less likely an insurance company
will have to replace it and if the roof is older and already
near the end of it's life expectancy, an insurance company
may only offer to insure a portion of its replacement cost.
- Security System
Motion detectors, surveillance systems, fire alarms, and
designated security systems can actually provide you with
an additional benefit and decrease your premiums significantly.
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