Factors that Affect Your Home Insurance Premium

Factors that Affect Your Home Insurance Premium

Factors that Affect Your Home Insurance Premium

Ever wonder how your insurer calculates your home insurance premium?  Here are some factors that they take into account.

When you’re buying home insurance, it may seem like your insurance agent is asking some strange questions.  However, these questions are mainly to establish your home’s risk factors.  Your home insurance premium is a reflection of how your insurance company evaluates your risks.  Curious to know what they’re looking for?  Here is a list of the factors that might influence your home insurance premium.

Your Age

If you are young and just purchasing your first home, chances are your insurance rates will be higher than older, more established homeowners.  Additionally, some insurers will offer reduced rates for older or retired homeowners.  Generally speaking, most insurers view younger individuals as more risky to insure.

Your Location

Where you live can also impact your insurance rates.  For instance, if you live right on a fault line or are in the heart of storm territory, you should expect your insurance premiums to be on the higher side.  Unfortunately, many of us cannot choose where we live.  So at the very least, do your best to prepare your home for the risks associated with your local weather conditions.

Your Lifestyle

When you’re buying home insurance, expect your agent to ask you some questions about your lifestyle.  While these questions may seem random or even invasive, they are designed to evaluate all your risks. For instance, if you are a smoker, you might have higher rates due to your increased risk for a house fire.

These are just a few of the factors that insurers take into account when establishing your home insurance premium.  Once you understand what your insurance company is looking for, it’s possible to mitigate your risks and lower your insurance rates.  For questions about how you can lower your home insurance rates while still getting the coverage you need, contact Club Agency Insurance Brokerage in Garden City, New York for assistance.  Our knowledgeable team is ready to help you find the right coverage to fit your budget.