Buying homeowners insurance is not easy˳ The process of buying homeowners insurance can be frustrating, complicated and confusing˳ Sometimes, it’s difficult to accurately compare rates, since coverage isn’t usually identical from insurance company to insurance company˳
However, to help you understand the factors that insurance companies use to determine your homeowners insurance rate, I’ve listed the Top Ten factors that affect your homeowners insurance rates˳
1˳ Geography˳ The further your house is from a fire station, the higher your premium will be˳ So, homes in cities, where fire stations are closeby, will have lower rates than homes in rural areas˳
2˳ Construction˳ Homes built of non-flammable materials, like brick, stone and concrete, have lower rates than homes built of flammable materials like wood˳
3˳ Age˳ The age of a home probably has less affect on rates than any of the other factors˳ Some older homes are extremely well built, and some newer homes are quite cheaply built˳ More important is…
4˳ Value˳ When you calculate the value of your home, leave out the value of your land˳ Only consider the replacement cost of the dwelling at today’s prices˳
5˳ Occupancy˳ A single family home will have lower costs than a duplex˳ But if you operate a business from your single family home, the premium will increase˳
6˳ Contents˳ The value of your personal property is usually calculated by the insurance company as 50% of the dwelling value˳ So, if your personal property has value in excess of that amount, you need to increase the policy limits on Contents˳
7˳ Liability Limits˳ Homeowners Insurance is a package policy with a minimum liability limit built in˳ I recommend that you increase your liability limits significantly above the minimum˳ Jury awards on liability claims can run into the hundreds of thousands of dollars˳ A minimum liability limit will leave you dangerously under-protected˳
8˳ Additional Living Expense (ALE) Limits˳ ALE is usually 20% of the Dwelling limit˳ So, increase the ALE limit if you feel it is too low for your needs˳ It usually is˳
9˳ Deductibles˳ The deductibles you choose will have a significant affect on your insurance rates˳ Generally, the higher your deductible, the lower your rate˳ Always choose the highest deductible your budget will allow˳ Then, set aside one deductible in your savings account to take the financial pressure off your deductible choice˳
10˳ Claims History˳ If your home is free of previous insurance claims, you’ll get the best insurance rates˳ If you have had previous insurance claims, the insurance company will consider those claims when they calculate your premium rate˳
A change in any of these Top Ten factors can cause a change in your homeowners insurance premium˳ Make sure that you fully disclose the correct information about each of these factors to your agent˳ That way, you’ll be most certain to get the lowest homeowners insurance rates you can˳
If you have experienced an insured loss, whether auto, business, fire, wind, flood or other, you need to know winning insurance claim strategies˳ The insurance company will not tell you the claims process, but I will˳ I will show you how to take control of your insurance claim, and add hundreds or even thousands more dollars to your claim settlement˳ For more information, go to the website listed below˳
Source by https://ezinearticles˳com/?Homeowners-Insurance—The-Top-Ten-Factors-That-Affect-Your-Homeowners-Insurance-Rates&id=1741233
