Factors that Affect Your Home Insurance Premium

Find out what factors affect your home insurance rates.

Have you ever wondered how your insurance company determines your home insurance premium?  Generally, your insurance premium is based off the individual risk factors that your home faces.  Curious to know what your insurance company sees as a risk? Here are some of the factors that affect your home insurance rates.

1) Your Age and Marital Status

How old you are and whether you are married actually plays a role in how your premium is calculated.  Typically, insurance companies view younger and single homeowners as riskier to insure.  As a result, if you are a young and single homeowner, you should expect to have higher rates than your neighbors who have been married for 40 years.

2) Your Home’s Location

The area you live in can also affect your home insurance rates.  For instance, if you live right on a fault line or in the middle of a flood plain, then your rates will reflect your risky location.  Additionally, if you live in a dangerous part of town, then your rates will be higher due to your increased risk for burglary and vandalism.

3) Your Pets

Most insurance companies view pets in relation to the damage they could do to your home.  This means that if you are a pet owner, then your premium is probably higher than a homeowner who doesn’t have pets.  Be aware, if you have a larger dog or a dog that is considered “dangerous,” then you might have even higher rates.  In fact, some insurance companies might refuse to cover you at all.

4) Your Lifestyle

When you are going through the home insurance process, you may notice that your agent is asking questions that are personal and seemingly unrelated to insurance.  These questions are usually used to help establish your lifestyle risks.  For instance, your agent might ask about your smoking habits.  This is because smokers have a higher risk of a house fire and their rates would be calculated accordingly.

These are just a few of the many factors that affect your home insurance rates.  If you have more questions regarding your risk, or if you simply would like to begin the home insurance process, then trust the experts at Valley West Insurance.  Our dedicated team is ready to assist you with all your insurance needs.  Contact us to get started today!

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