After struggling for years with an incredibly expensive insurance plan, I realized that there had to be something that I could do to make things right. I started shopping around for a business that could help me to make things right, and I was able to find an insurance policy that fit well with my budget and my lifestyle. The premiums were low and the coverage was great, which is almost unheard of these days. This blog is all about choosing incredible insurance coverage for you and your family, so that you can enjoy a happier, healthier life. Check out this blog for more information.
There are many factors that go into determining your overall insurance premiums. While some things are in your control, such as selecting your deductible, others are not. One thing that you cannot change about your current home is its location, and it will impact the premiums due to several reasons, many of which affect the cost of your residential insurance claims.
The Potential For Natural Disasters
Different areas are more prone to natural disasters than others, which can make this unavoidable. For example, regions around the cost will be prone to potential storms, and homes that are near fault lines will have a high risk of experiencing an earthquake. Other natural disasters can be due to how close you are to water. A nearby river may put your home in a flood zone, which identifies your home for a higher risk of being damaged by water.
The Construction Costs of Your home
The value of your home is largely determined by how much it will cost to rebuild it in a total loss situation, not how much you could sell the home for at the time. This is because the cost to rebuild is the only cost an insurance company cares about. For instance, if you experience a house fire that burns your home to the ground, the your insurance provider will need to only pay the costs related to replacing the exact house that you had.
Unfortunately, the cost of materials will always go up with inflation, and the cost to rebuild your home will increase over time. Factoring the cost of inflation could be why your rates always seem to increase every single year.
The Proximity to Fire and Police Stations
Anything that can cause more damage to happen to your home will cause the premiums to increase. This is especially true with how close the home is to the nearby police or fire station. The reasoning is that if you do have a house fire, a nearby fire station should arrive quickly and help put the fire out. This minimizes the damage to your home and will limit the repair costs.
The same can be said of nearby police stations. The faster that the police can respond to a call, the better chance that they will have to stop crime in your neighborhood. Damage and stolen goods can all be claimed under a home insurance policy, and fast responders can limit the damage that is caused.
While you cannot change these factors, speak with your agent about other things that can change to lower premiums.
Share18 December 2017
