Factors Affecting Homeowners Insurance RatesHomeowners realize the importance of having the right type of home protection for those unfortunate situations that can and do happen. Perhaps you receive your premium bill and pay it without much thought, but have you ever wondered about the various factors that underwriters consider when determining your specific homeowners insurance rate? Read on to find out factors affecting homeowners insurance rates.

Key Factors that Impact Your Homeowners Insurance Rates, but not limited to:

Statistics from The National Association of Insurance Commissioners show that insurance rates for homeowners have risen over 45 percent in the last ten years, so when you get your bill, you may want to look for ways to reduce your insurance rate or at least know how it was determined.  Below are some key considerations to review:

Credit Score– Your credit score is an important consideration when determining your home insurance premium.  Those with excellent credit scores will have lower home insurance premiums than those with a lower credit score. Statistically, people with lower credit scores tend to file more homeowners insurance claims.  If you want to look for a way to reduce your insurance premium, try to pay off your credit card debit, if possible.

CLUE Report– This type of report provides information about any previous insurance claims filed on your property, either by you or any previous owner.  Statistically if you have a history of filing multiple claims, you have a higher likelihood of filing/experiencing future claims. This Comprehensive Loss Underwriting Exchange (CLUE) report shows the past seven years of auto and property claims history. The past is a true indication for predicting the future

Proximity to Fire Station– If your home is close to a fire station you will have a lower insurance cost than those living far from a fire station.  If you are close by, it is more likely the fire department can extinguish a fiery blaze within minutes thus reducing insurance costs for your insurer.

Marital Status- This is a factor that is considered when determining your homeowners insurance rate.  Typically married couples are less likely to experience and/or file insurance claims than single people.

Age of Home- Typically, premiums for older homes will be higher than those of newer homes.  This is due to replacement costs should something catastrophic happen that destroys your home.  Replacement costs are higher for older homes due to the materials being more expensive to replace and/or repair versus newer construction.

Construction– When looking for a home to buy, you want to consider the materials used in the construction.  For example, if your home is made with wood or other flammable materials, you will be charged with a higher insurance premium than a home that is made with brick.

Condition of Roof- If your home has an older roof or a roof of a subpar material, you increase the risk of having an insurance claim versus a home with a newer roof.  Therefore, if you have an older roof, your home could cost more to insure.

Dog Breed- Certain dog breeds are viewed as more dangerous than others.  So, if you have one of these “dangerous” dog breeds in your home, you have an increased risk of a dog bite or some other injury versus those homeowners without pets. Thus, you will be assigned a higher insurance rate than those without pets or a dangerous breed.

Attractive Nuisances- If your home has amenities such as a trampoline, playground equipment, pool, pond, or any other hidden dangers, you will have a higher rate due to the increased risk of liability and having accidents occurring on your property. 

Please note that every insurance company rates differently.  If you have any questions or concerns about your New York homeowners insurance rate, call us immediately so we can assist you.  We are here for all your homeowners insurance needs.  Call us TODAY at 845-627-2130.