• Home
  • Personal Finance
  • Investing
  • Business
  • Career
  • Consumer
  • Debt
  • Lifestyle
  • Retirement
  • Taxes

Personal Finance News

Latest News About Personal Finance

  • Blogger Net Worths
  • Top Personal Finance Blogs
  • Blogroll

How Is Your Home Insurance Rate Calculated?

December 10, 2018 Leave a Comment

Home insurance is one of those things that can just seem like an added monthly bill that is completely unnecessary but should there ever be a time when you require that insurance, it could quickly pay for itself many times over. No-one likes to think about emergency situations happening, damage to their home, and other issues that can require some rather costly repairs, but the reality is that life happens.

If you’ve decided it’s time to start looking into homeowners insurance and at least consider some basic coverage, then you are probably curious as to how your rate is determined. The amount you pay for home insurance is actually determined by a number of factors, some of which will be under your control whereas others won’t. Let’s take a closer look.

The Home Itself

Insurance Land, an insurance company located in Florida says the biggest factor in determining your insurance premium is the house itself. Any insurance company is going to look at such things as the type of structure, the size of the home, the age of the home, and even what kind of material has been used to build the home.
Insurance Land also points out that if you happen to have an older home, sometimes your rate can be higher, but that can depend on the building materials used. This is exactly why they offer free quotes, which can be done online so that you can get an idea of what your rate may be.

What is Your Claims History?

Another big determining factor is your claims history. Perhaps you have owned other houses in the past, and maybe you’ve had to make an insurance claim. That will remain in your history and can sometimes act as a red flag for an insurance company. At the very least it can push you into the higher premium category.

If you’ve had a number of claims in the past, it may not only mean you will pay more for insurance, but you could find it difficult to be insured at all.

The Contents of the House

Then you need to consider the contents of your house, your personal belongings, and how that may affect your insurance premium. If you have a lot of expensive collections, electronics, jewelry, designer clothing, etc., then your rate will likely be higher. You may even need to get additional coverage for those specific items.

Where Your Home is Located

Unfortunately, some neighborhoods have higher crime rates, and if you happen to live in one of those areas then you will likely see a hike in your rates. Also, if you happen to live in an area that gets a lot of natural disasters, the rate can increase.

Is There an Alarm System?

One thing that can affect your rate in a positive way is to have an alarm system in the home. This can actually decrease your premium. Alarm systems that can monitor the carbon monoxide level and whether or not there is smoke detected in the home can result in even greater savings.

All of these factors will help to determine your home insurance premium.

Related

Leave a Comment Cancel reply

Must Read

  • What's the Recommended Temperature for Vacant Home in Winter?
  • Professional Panda Cuddler as the World's Best Job for $32,000 per Year
  • How to Refinance a Paid Off Car
  • How to Reach a Live Person at IRS to Resolve Tax Problems
  • 61% Now Living Paycheck to Paycheck
  • How to Cash Out Pension Plan Early
  • 36% Earning $100,000 or More Living Paycheck to Paycheck
  • 401(k) Balances Hit a New All-Time High
  • Uber Now Lets You See How Many One-Star Ratings You Received From Drivers
  • Losses To Romance Scams Reached a Record $304 Million in 2020

Recent Posts

  • More Americans Are Using ‘Buy Now, Pay Later’ Services To Pay for Groceries
  • 5 Tips To Get The Best Value On An Insurance Policy
  • 61% Now Living Paycheck to Paycheck
  • 36% Earning $100,000 or More Living Paycheck to Paycheck
  • Two-Thirds of Americans Live Paycheck to Paycheck
  • The Hit to Your Pocketbook From Higher Gasoline Prices: $2,000 a Year
  • Uber Now Lets You See How Many One-Star Ratings You Received From Drivers
  • Survey: 7 In 10 Americans Living Paycheck To Paycheck

Connect With Us

  • Facebook
  • Twitter
Home · About · Terms · Privacy · Contact · Copyright © 2023 · Personal Finance News