Factor calculator home insurance premiums

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Your homeowner insurance premium is derived from a number of factors.  Some of these factors include:

1. Where you live – Some areas are more prone to certain types of claims.  For example, some parts of a town may have historically higher crime rates, such as developments with newer homes.  Also, homes closer to the coast are more prone to flood and wind damage.

2. Age, size and construction type – New homes may be built with stronger materials to comply with newer building codes.  Also, larger homes cost more to replace and are generally more costly to insure.

3. Replacement value of your home – Many home insurance policies, particularly for newer homes, are designed to pay the cost to replace your home if damaged.  Remember, this is not necessarily what you paid for your home and it does not include the value of the land on which your home is built.

4. Value of your personal property – In addition to insuring the physical structure of your home, home insurance pays for damage to property inside the home, including electronics, furniture, clothing and other valuables.  Make sure to inventory your belongings – in the event of a catastrophe you’ll need to be able to recall what was lost.  Videotaping your home once a year can play a crucial role for you and the insurance adjustor.

5. Personal liability – Your property is not all that is covered by home insurance.  Most policies also cover you and your family, including most pets – for bodily injury to other individuals or property damage which you cause and are legally responsible for, including lawsuits that may arise from these claims.
Read More Basic Home Insurance

by Furniture and Home

Posted in: Factor Calculator Home Insurance Premiums, Home Premium Insurance, Insurance