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Home Insurance - Rating Factors |
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What influences your home premium?
- Value of your dwelling – What
will it cost to rebuild your home to the
same design, dimensions and quality of
materials and construction?
- Coverage Issues - Coverage quality,
limits, added coverages, deductible amount
will all influence the premium.
- Location – Some locations are
more susceptible to particular perils
i.e. theft, sewer backup, exposure to
fire in congested areas, etc. Location
also influences available fire protection
such as hydrants, volunteer or professional
fire fighters.
- Year of Dwelling and maintenance
record – Newer houses tend to have
fewer claims. Homes over 20 years old
need to show the maintenance record of
roof, plumbing, electrical and heating
appliance.
- Claims history – A no claims
discount is available for those clients
with no claims in the past 3 or more years.
- Alarms – Burglary, fire and smoke
alarm systems, particularly connected
to a central monitoring station represent
a lower risk and therefore lower premium.
- Type of dwelling – A single-family
dwelling is principally exposed to only
their own negligence. An apartment building
or other multi-occupant dwelling exposed
one tenant to a neighbor's fire or water
damage.
- Type of Heating – Some types
of heating, such as electrical systems,
are safer than fuel based systems and
therefore the related premium is lower.
- Financial Stability – In the same way that financial institutions assess credit worthiness before extending credit in various forms to their customers, insurance companies rely on similar information which, for many clients, can result in lower premiums.
- Multiple Policies With One Insurer – This is one of the easiest premium discount options available in terms of eligibility. Some insurers will give a certain discount if a client insures their home and auto with them. The discount can apply on both policies and yield interesting premium reductions.
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