Charles Goodman Group: Trusted Armonk Insurance Broker
If you’re in the market for homeowners insurance because you’re buying a new home or would like to find a better deal, understanding how homeowners insurance premiums are calculated will prove to be quite useful. As any Armonk insurance agent can attest, a variety of factors are taken into consideration when insurance premiums are calculated. Basically, the insurance company bases the cost of your premiums on the likelihood that it will have to pay out for claims. The overall risk of insuring your home is the driving force behind premium calculations, and many factors come into play.
The actual structure of your home plays a huge part in determining the cost of your premium. Not surprisingly, the value of your home will heavily influence the cost of your policy. The insurance company will basically multiply the square footage of your home by local construction costs. Other aspects of your home impact the cost of your premiums too. For instance, the age and style of its roof can make your premiums go up or down. Newer roofs made out of impact-resistant materials like aluminum result in lower premiums while older roofs made out of less durable materials result in higher premiums.
The location of your home will also have a major influence on the cost of your homeowners insurance premiums.
An insurance agent from the Charles Goodman Group of Armonk would be happy to answer any question you have about health insurance or umbrella insurance.
If you live in a fairly crime-ridden area with lots of break-ins, vandalism and other problems, your premiums will be higher. Likewise, if homes in your neighborhood are packed closely together, your rates will be higher due to increased fire risk. Speaking of fire, your home’s proximity to fire departments and fire hydrants will affect your premiums as well. Finally, weather in the local area will be taken into consideration too. If severe weather is rare, your premiums will be lower because your home will be less likely to be damaged in a storm.
Discounts for things like alarm systems and smoke detectors can help chip away at the total cost of your homeowners insurance premium. You may also receive a hefty discount by bundling auto insurance coverage with your homeowners insurance policy.
While most of these elements are beyond your control, adjusting your limits for liability coverage and contents coverage can help keep insurance costs in check. Similarly, opting for a higher deductible will result in a lower premium. However, you need to make sure your coverage limits are high enough and that you will be able to pay your deductible if the need arises.