Have you ever asked yourself why insurance firms charge varying premiums to different people? There are a number of factors that they consider before making a decision on the final cost of your New York home insurance premium. Check out our compilation of the top seven below:
1) Your Insurance Score
Insurance companies consider your credit records when computing your overall insurance score, with factors like current loans, debts and your net monthly salary being taken into account. If you have a low insurance score, then the premium rates you are charged will be higher than a person with a higher insurance score.
2) The Frequency of Occurrence of Risks
If you have a good record, the insurer will charge you a lower premium. For example, a homeowner whose past record indicates that he/she has filed several claims will attract higher premiums than another who has never filed a claim because the insurer concludes that the former has a higher likelihood of file another claim in the future. Claim frequency leads to claim severity- is an insurance company underwriting mantra.
3) The Age & Condition of Your Home
If your house is older and has not undergone renovations in the recent past, then it will be more costly to insure than a newer home whose HVAC, plumbing and electrical systems have been updated most recently. In addition, building materials may also have an impact on your final cost of insurance premium due to the fact that certain options, for instance wood, are more vulnerable to fire than brick or concrete.
4) The Presence of Risk Factors on Your Property
Having a swimming pool or a large trampoline in your backyard will also invite a higher-than-average insurance premium since there is a higher probability of your family members or even visitors getting injured when using such facilities. You may therefore want to install a fence around the swimming pool, as well as a safety net around the trampoline, to help reduce your homeowner’s insurance premium rates by some margin.
5) Geographical Location
Due to their higher vulnerability to such natural disasters as floods or earthquakes, some places are classified as higher-risk regions than others. If your home is located in such places, then expect to be charged higher insurance premiums since, obviously, it is more likely to get damaged than other homes. This also applies to high-crime locations.
6) Insurance Coverage & Deductible
Choosing the minimum coverage for your property attracts lower premiums. This is the case also if you go for a higher deductible. On the other hand, opting for a lower deductible — as well as adding riders so as to be able to insure more expensive possessions in your house – increases your premium costs.
7) Having Pets in Your Home
Due to a higher possibility of damage, the presence of pets in your home often attracts higher premiums, more so if the pets are large or are considered a destructive or dangerous breed. Some insurance companies will even refuse to cover such pets if they feel that there is a higher risk of occurrence of injuries or deaths resulting from an aggressive animal.
If you are searching for Homeowners Insurance in NY be sure to request your free quote with Coastal Insurance Solutions. Coastal Insurance will provide you with 10 free quotes from top-rated competing insurance companies.
View the Coastal Insurance Video Library to find helpful video’s explaining everything from, how to save money on Homeowners Insurance to an easy explanation of Flood Insurance. Call today (631-782-3175) to speak with one of our underwriting experts. Fast Quotes, A.M. Best Rates & Free Advice.
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