What Is Covered Under Home Insurance

by Administrator 28. April 2017 16:00

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Beginner's Guide To Motorcycle Insurance

by Administrator 24. April 2017 15:51

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Factors That Affect Your Home Insurance Rates

by Administrator 17. April 2017 06:49

Home insurance rates can significantly vary from one house to another depending on the type of home and age of your building etc. Having more expensive items in your home also affects the premium rates. Every insurance company has different insurance policies and strategies to decide the home insurance rates. Below are the important factors which will affect the rates of your home insurance.

  • How old is your home? : The home insurance rates hugely depend on the age of your home. Generally, the older constructed homes are charged more by insurance companies since they require repair and maintenance work on a frequent basis. Also, the insurance companies may charge a higher premium amount if they fear early claims. Therefore, it is necessary to get minor repair work done in your property in order to have a positive impact on premium calculation.
  • Features in the home: Additional security features in the house such as a burglar and fire alarm, CCTV cameras or wall fencing will help in the reduction of home insurance premium rates. On the other hand, utilities like swimming pool, roof top garden or indoor Jacuzzi will increase the insurance premium.
  • Location of home: Home insurance premium rates also depend on the location of your home. A home situated in an isolated place outside the city will fetch higher insurance premium because of an increased risk of a burglary or fire. Additionally, a house located in the town or near the fire and police station will amount to a lesser home insurance premium.
  • Type of home appliances: The type and number of home appliances installed in the house will also affect your home insurance rates. A house having more electrical appliances will have an increased risk of short circuiting or fire and hence will amount to extra premium as far as home insurance is concerned. As the owner of the house, you need to declare the number of home appliances to be included in the insurance coverage. The insurance company will accordingly decide the premium rates.
  • Inclusion of costly articles: Certain articles such as antique pieces and jewelry items are costlier in terms of their value and hence need to be included separately in the home insurance policy. Therefore, a house having a large number of expensive items will have a higher insurance premium and vice versa.
  • Deductible: One of the other key factors that are taken into consideration while deciding the home insurance premium rates is the deductible. A higher deductible corresponds to lower insurance premium and a lower deductible will fetch you high premium rates. But decide on a deductible only after calculating your budget and how much you can afford to pay.

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