Factors that Influence Home Insurance.
There are several factors that influence the cost of your homeowners insurance policy. You won’t be able to change or control many of these factors.Home’s age and type of construction
If your home is older, there’s a higher chance there will be problems with major components like plumbing, electrical wiring, and HVAC systems. New homes are less susceptible to these major problems.Location
If you live in an area prone to natural disasters, with a relatively high crime rate, or located far from emergency services, expect to pay more for your policy.Claims History
If you file several claims a year, you are more likely to pay a higher premium.Risk Factors
If your home has a swimming pool, aggressive dog, trampoline, or other characteristic deemed risky, you’ll likely pay a higher premium.Credit Score
Your credit score (whether good, bad, or average) has an impact on the price of your policy.
Deductible
The level of deductible you choose plays a role in the price of your coverage. If you choose a high deductible, that means you have to pay more out of pocket if an incident does occur. The trade-off is a lower premium. (As a side note, I recommend sticking with a deductible you’re comfortable with. If your home is damaged, coming up with $1,000 is probably manageable. Coming up with $2,500 or $5,000 is probably going to be more difficult for most of us. Remember, your insurance won’t kick in until the deductible is met.Coverage Amount
The amount of coverage you select will play a role in the price of your insurance.You can’t control the location of your home, but you do have a say in whether you get a trampoline or an aggressive dog.
By choosing to minimize the risks that are in your power to control, you’re helping keep your premium low.What Does Home Insurance Not Cover?
As much as insurance is meant to cover the things you can’t plan for, the inverse is also true: you need to plan for the things insurance doesn’t cover. Too often people file home insurance claims, only to find out too late that they’re liable for the high cost of damages themselves. Sometimes, it’s a simple matter of gaps in coverage, where someone thought they were protected but either had insufficient or incorrect coverage. Those issues can usually be addressed by either upgrading a policy (before disaster strikes) or switching providers to one with better coverage options. However, there are certain situations that aren’t likely to be covered by any insurance company, situations that can leave you on the hook for a lot of money if you aren’t prepared. Here are some of the most common.Flooding
Home insurance does not cover damage caused by weather-related flooding. Many insurance companies do offer special coverage or water damage endorsements, but they only cover accidents occurring inside the home (or on the property), such as flooding caused by burst pipes. They won’t cover water damage caused by heavy rain or overflowing rivers. If you think your home is at risk of flooding, or want the peace of mind of the added coverage, the government does offer protection through the National Flood Insurance Program.Earth Movement
Earthquakes The most common earth movement damage is that caused by earthquakes. Special endorsements can be purchased for an extra fee in all states except California, but without them, no standard policy covers earthquake damage.
Landslides and Sinkholes: Earthquakes aren’t the only forms of earth movement to consider. Standard policies also won’t cover the damage caused by sinkholes or landslides. Like with earthquake endorsements, some companies may offer this protection, but with the exception of the state of Florida (which mandates sinkhole coverage) they aren’t legally required too.
1 comments
contact me my no 00966572882589
EmoticonEmoticon