If you are a homeowner, you realize the importance of homeowners insurance, but do you ever wonder how your insurance premium rate is established? Most people receive their bill and without much consideration, just pay it. However, you should know there are certain things that are taken into consideration when determining homeowners’ insurance rates.
6 Considerations When Determining Homeowners Insurance Rates
Keep in mind that every insurance company rates differently, but there are some factors your Alabama insurer is considering when determining your specific premium. Below are six considerations to keep in mind:
Age of Home- The age of your home is essential when determining insurance rates. The older the home, the higher your premium rate for many reasons. For example, the older the home the more likely you will experience claims due to old electrical issues, plumbing, and hidden water damages. Also, older homes are typically built with materials that are more expensive to replace/repair as opposed to newer structures.
Marital Status- Studies show that married couples are less likely to file a claim than single homeowners. Therefore, your single neighbor may be paying a higher insurance rate than the married couple next door.
Claims History- If you have a history of filing multiple homeowners insurance claims, then studies show a probability of filing future claims. The past is an indicator of the future. This is one of the most essential factors that your insurer is taking into consideration when establishing your homeowners insurance rate.
Type/Condition of Roof- An older roof with aging shingles and rotting wood can lead to a higher probability of a homeowners insurance claim. If your roof is older, your rate will typically be higher than that of a homeowner with a newer roof.
Home Amenities- Amenities such as a pool, trampoline, and/or hot tub can increase the risks of accidents happening on your property. With that will be an increase in your insurance rate or even a chance of being declined to insure.
Pets- Certain breeds of dogs or rare animals/pets are considered dangerous and can increase the likelihood of a homeowners claim. Dog bites are one of the most common presented claims which will mean a higher insurance rate than those homeowners without certain breeds of pets.
If you have any questions or concerns regarding your Alabama homeowners insurance rate, call us and we will assist you in every way. We are here for all your homeowners insurance needs. Don’t wait. Call us today at 256-704-7400.
