It is normal to seek cheap home insurance so you save the maximum amount of money on premiums. However, it is important to understand that to get the best value for your money with home insurance, you will need to consider a number of factors other than the money.
- The Value Of Your Home – The value of your home is determined considering the following factors:
- How much would the rebuilding of your home cost – in other words, if you lost your home to any type of mishap how much would it cost to have it replaced (rebuilt). Note that this excludes the cost of the land.
- Material used for building your home – houses made of bricks and mortars attract lower premiums than those made of wood – primarily because they are less risk.
- Present condition of your home – new, well maintained homes will attract lower premium than old and dilapidated houses since the later pose more risk.
- Frequency of claims – this factor does not pertain to you in particular (though this is a factor as well); it represents the area where your house is located. If the claims of the region are in higher frequency, the premium will go up.
- The Options You Choose For Your Home Insurance – the second important factor is the options you choose as coverage:
- Types of coverage you choose to be included in the homeowners insurance – are you opting for named perils, or open perils; package perils or specific perils; total coverage, limited coverage or extended coverage, and so on.
- Deductibles – the easiest way to bring down the premium is to raise the deductibles amount. However, be careful about this aspect as this would mean higher out of pocket expenses before the claim comes through.
- Multiple policies – using the same provider for multiple policies such as auto insurance, life insurance, etc would bring down the premium as well.
- Loyalty factor – if you have been a customer with a provider for many years you are entitled to significant discounts.
- Credit history – the credit score is an important factor for insurance companies as it is a good indicator of risk.
- Claim history – another very important factor that would influence the premium is the frequency of claims you filed in the past. High frequency of claims means you are high risk.
- Additional Factors – other factors that contribute to the calculation of the premium are:
- Home business on the premises
- Pets and types of pets
- Swimming pools/ trampoline
- Safety devices installed at home
- Type of heating device
Speak directly with an agent at Insurance Medics, call now at 1 (866) 396-9140. Our customer enrollment center is open Monday through Friday from 9:00AM to 6:00PM EST and Saturday from 10:00AM to 2:00PM. We look forward to answering all your questions and having you as a customer.