When you get your homeowners insurance premium bill, you may not think too much about how your particular rate was established, but maybe you should. Insurance rates are not randomly assigned an amount, but instead involve some well thought considerations when calculating each and every homeowners insurance rate. If you are contemplating on becoming a homeowner or already are and paying a bill without much reflection, you can find out more about varying homeowners insurance rate factors to consider in an effort to save money on your premium.
Factors for Consideration to Establish Your Homeowner Insurance Rates:
The next time you receive your premium bill, you may understand more of why you are paying that amount. Keep in mind that if you wish to shop for more affordable rates, you can contact your local Alabama independent insurance agent for assistance.
- Property Amenities- If your home comes equipped with a swimming pool, hot tub, jacuzzi or trampoline your insurance rates may be higher than someone who does not own those amenities. Those amenities increase the risk of injury to someone on your property, thus the higher insurance homeowners rate.
- Claims History- Studies indicate that your past claims history is a predictor of your future claims record. For example, if you have an extensive claims history then the likelihood you will incur future losses is increased. Your premium would consequently be higher than the next person with little to no claims reported or filed.
- Marital Status- Studies show that typically married couples have a lower likelihood of experiencing losses/filing losses than the single counterpart; therefore, the married couple may have a lower insurance premium.
- Age of Home- The age of your home is a consideration when your homeowners insurance rate is determined. The older the home, the higher the rate due to the cost of repairs/replacement on an older home being more costly.
- Age/Condition of Roof- When you purchase a home, an inspector will do a thorough inspection of your roof to determine the age and condition of the roof. If your roof is old, rotting, and missing shingles, your insurance rate will be higher than the home with a newer roof due to an increased likelihood of roof damages caused by wind or water.
- Dog Breed- Dog bites are one of the most common claims under homeowners insurance policies; therefore if you own a dog (especially certain dog breeds considered “dangerous”) you will be assigned a higher insurance premium than the homeowner who doesn’t own a dog. If you have any questions about which dog breeds are considered “dangerous”, contact your local Alabama independent insurance agent for assistance.
There are other rating factors that are also considered (such as deductible amount) when your Alabama homeowners insurance rate is established. If you have any questions about your premium rate, contact us at Burkett & Associates and we will assist you in every way possible. We are here for all your Alabama homeowners insurance needs. Call us TODAY at 256-704-7400.