Have you Ever Wondered What Determines How Much you pay for Homeowners Insurance?
The "Value" of your home is not the whole determining factor in how much you pay. Where you live has a large impact on what you pay. Crime rates vary from Community to Community and so does the access to your local fire, police department and water supply. These factors help determine the Protection Class. Along with the Value of your home the following factors determine the rates you pay for your Homeowners Insurance.
1) Type of Construction: Framed Homes usually cost more to Insure than Brick Homes.
2) Age of the Home: New Homes may qualify for more discounts. Older homes may not be eligible for preferred
programs. Insurers may require older homes to have updated wiring, plumbing, heating and roofing.
3) Local Fire Protection: Your home's distance from a Fire Hydrant and the quality of your Local Fire Dept
determine your Protection Class. Generally the higher the protection class the higher your home owners insurance rates.
4) Amount of Coverage & Deductible Amount: The amount of coverage you purchase for your home, contents
and Liability will affect the price you pay(the more coverage you want the higher the rate). Your Choice of a Higher Deductible will also reduce the price.
5) Insurers offer lower prices for having your Auto and Home Insurance with the same Company. Also Installing
dead bolt locks and alarm systems can give you additional discounts.
Also remember that Catastrophic Loss Experience may drive up the costs of Insurance in your geographic area or region. (EX: Wildfires, Floods,
Wind & Hail Storms etc.) These are huge losses and disasters that take time for the Insurance companies to
This blog post was written by Camille in our Greenfield Center office. If you have any particular questions about how your homeowners insurance rates are calculated please give Camille a jingle at 518-893-2683 or email her at firstname.lastname@example.org