Find out what factors affect your home insurance rates.
Ever wonder how insurance companies calculate your home insurance premium? Generally, insurance companies base your premium off your individual risk factors. Some of these are obvious such as your home’s location or the age of your home. However, there are also some surprising factors that your insurance company takes into account. Here are some of the most surprising things that affect your home insurance premium.
Distance From a Fire Hydrant
If you have a fire hydrant right in front of your home, you may be in luck. Many insurance companies will offer lower rates for homes in close proximity to a fire hydrant. Because of the easy access to water, most companies believe these homes have less risk for fire. This reduced risk translates into a lower premium.
If you have a cat or dog, you should expect to pay higher premiums than someone without a pet. Insurance companies look at pets in relation to the damage they could do to your home and they raise your rates in response to this risk. Even worse, if you have a particularly large dog, or own certain breeds that are deemed “dangerous,” then certain companies may deny you coverage completely.
When you’re trying to get home insurance, be ready to answer questions about your lifestyle. While these questions might seem rather personal and unrelated to your home, they are meant to determine your risk. For example, your insurance agent might ask about your smoking habits. If you are a smoker, you will have higher rates because you have a higher risk of a house fire.
Finding the right home insurance can be a hassle. But keep in mind that it’s important to get the coverage you and your home need. If you want to lower your insurance premium, talk to your agent and discuss your risk. Together, you can find ways to mitigate your risk factors and hopefully lower your premiums. For questions about your home insurance premium, contact the experts at Pierce Insurance Gourp. Our team of professionals is ready to assist you with all your insurance needs.