Criteria for premium amount in home insurance
While deciding on the home insurance policy premiums to be paid by the policy holders, the insurance company has several criteria on which it evaluates the home and its surroundings. These criteria have to be disclosed so that the customer knows whether his home is being evaluated justly.
As is common with all other insurance contracts, home insurance contracts have to be weighed against the cost of the home (these may include but are not limited to materials, construction, cost of site it is built on and so on), amount of down payment or deductible and liability coverage to decide on the premium amount. Next, the nitty-gritty to be considered for the premium is: age of the home, distance from the nearest fire station, credit history and credit scores of the policy holder and amount of debt carried by him, history prior claims filed by the applicant, and nature of the area – surroundings and neighborhood determine whether it is a ‘safe’ area or there are frequent claims filed by policyholders of that area. (For example the affects of hurricane Katrina resulted in many claims). This is the reason the policy rates differ from area to area. The type of construction, sturdiness of the walls and roof also play a part in the weight-age for premium calculation, albeit a minor one.
Lastly, it is always advisable to take quotes from at least 2-3 insurance providers before drawing up a home insurance contract.
As is common with all other insurance contracts, home insurance contracts have to be weighed against the cost of the home (these may include but are not limited to materials, construction, cost of site it is built on and so on), amount of down payment or deductible and liability coverage to decide on the premium amount. Next, the nitty-gritty to be considered for the premium is: age of the home, distance from the nearest fire station, credit history and credit scores of the policy holder and amount of debt carried by him, history prior claims filed by the applicant, and nature of the area – surroundings and neighborhood determine whether it is a ‘safe’ area or there are frequent claims filed by policyholders of that area. (For example the affects of hurricane Katrina resulted in many claims). This is the reason the policy rates differ from area to area. The type of construction, sturdiness of the walls and roof also play a part in the weight-age for premium calculation, albeit a minor one.
Lastly, it is always advisable to take quotes from at least 2-3 insurance providers before drawing up a home insurance contract.
