HOW ARE HOMEOWNER INSURANCE RATES CALCULATED?
Mar 2 , 2015
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Rebuilding cost of your home:Includes factors like rising or falling construction costs in the area and debris removal (which you might need after a major storm, fire, etc.).
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Materials that make up your home:Houses built from brick, stone, stucco, and other hard, dry substances can often get a lower rate than homes made of wood, which is softer and more flammable.
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Age of your home:Older houses may have inferior/degrading materials that are likely to cause issues. Or they may contain unique architectural features that are costly to replace.
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Fire protection in your area:Your area's fire protection rating matters when a fire breaks out in your home. It can affect how much you pay for coverage.
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Claims history in your area:Neighbourhoods that regularly get hit with things like tornadoes or burglaries might have higher home insurance rates.
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Personal claims history:Too many personal claims, your insurer might want a higher premium to account for it. Responsible homeowner s, your insurer will often reward you with a lower rate.
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Pets:Certain breeds such as pit bull and Rottweiler are sometimes considered un-insurable altogether.
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Coverage Selection:The more protection you need, the higher your premium tends to be.
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History with your insurance company:Insurers love their loyal customers, and they'll go out of their way to get you the best deal possible.