What Factors Determine Your Home Insurance Premium? - 17 Aug 2009 12:05
Insurance underwriters are those people who evaluate the risk of all insurance clients. They decide whether the insurer will insure you or not based on how much of a financial risk you are to the insurer. They also determine how much cover you get and how much your premiums are. Both an automated underwriting system and underwriter will look at the following factors when determining your home insurance policy.
The Home
The condition that the home is in is the first factor an underwriter will consider. They will inspect the home to determine wear and tear and the integrity of the electrical systems. Most insurers offer discounted premiums to newer homes. The type of home and its construction also plays a part in your premium. Certain architectural styles are more resistant to damage than others.
Obviously if your home is secure, and more resilient to theft, you receive lower premiums. If the area in which you live is lower risk, your premiums are lower too. The location also includes factors such as flooding.
The Habitants
Who you are and who you live with is also factored into the equation. Smokers are higher risk than non-smokers - about 2 -5 percent less risk. It also pays to be older as retirees get up to 10 percent discount because they’re at home more than the working class. Obviously if your retired mother or father lives with you, it benefits you to mention this to you insurer. It’s easier for someone at home to spot a fire than you while at work.
The Policy
Consider what type of cover you need. Are you insuring only the building or the contents as well. The more you cover the more you pay. Don’t assume your contents are covered in your home insurance. Read the policy.
Also decide how much you can afford to put in yourself in the event of a catastrophe. The more you pay in excess the less you premiums. Of course it helps no one if you can’t afford the excess you choose.
It also pays to insure your home and car with the same insurer. Often the insurer will grant you a discount if you have more than one policy with them.
Insurance underwriters are those people who evaluate the risk of all insurance clients. They decide whether the insurer will insure you or not based on how much of a financial risk you are to the insurer. They also determine how much cover you get and how much your premiums are. Both an automated underwriting system and underwriter will look at the following factors when determining your home insurance policy.
The Home
The condition that the home is in is the first factor an underwriter will consider. They will inspect the home to determine wear and tear and the integrity of the electrical systems. Most insurers offer discounted premiums to newer homes. The type of home and its construction also plays a part in your premium. Certain architectural styles are more resistant to damage than others.
Obviously if your home is secure, and more resilient to theft, you receive lower premiums. If the area in which you live is lower risk, your premiums are lower too. The location also includes factors such as flooding.
The Habitants
Who you are and who you live with is also factored into the equation. Smokers are higher risk than non-smokers - about 2 -5 percent less risk. It also pays to be older as retirees get up to 10 percent discount because they’re at home more than the working class. Obviously if your retired mother or father lives with you, it benefits you to mention this to you insurer. It’s easier for someone at home to spot a fire than you while at work.
The Policy
Consider what type of cover you need. Are you insuring only the building or the contents as well. The more you cover the more you pay. Don’t assume your contents are covered in your home insurance. Read the policy.
Also decide how much you can afford to put in yourself in the event of a catastrophe. The more you pay in excess the less you premiums. Of course it helps no one if you can’t afford the excess you choose.
It also pays to insure your home and car with the same insurer. Often the insurer will grant you a discount if you have more than one policy with them.