As a homeowner, you need the right type of insurance protection to safeguard your home and contents from covered losses, but have you ever wondered how your rate is determined?  There are many variables taken into consideration when your homeowners premium rate is established, although each insurance company rates differently.  Find out what you may not know about how YOUR homeowners insurance rate is determined.

Below Are Some Key Considerations Pertaining to Homeowner Insurance Rates:

Age of Your Home– If your home is older you may be faced with a higher homeowners insurance rate than someone owning a newer home. The reason being is if you suffer a loss and your home needs repairs or replacement, older homes are more costly due to the materials needed to repair or replace.

Age/Condition/Type of Roof- The condition and age of your roof is certainly a factor when determining your homeowners insurance rate.  If your roof is old and in need or replacing, you can expect to have a higher insurance rate due to the increased risk factor of a loss, such as water or wind damage.

Marital Status- Studies show that married couples tend to have a lower claims history than single homeowners so if you are married, you may get a lower rate than someone who is single. 

Amount of Liability Limits- This consideration pertains to the amount of liability insurance you take out on your homeowners insurance policy to protect you against claims of others who may become injured on your property.  This type of claim is one of the most common insurance claims filed and paying a bit more for higher liability limits may save you money down the road.

If you entertain a lot, have a pool or other amenities, your insurer will typically factor that higher risk of injury and correlate your premium to reflect that increased risk factor or choose not to insure you at all.

Past Claims History- Insurance underwriters indicate that your past claims history is a common predictor for the future.  An extensive history of losses reported/filed/handled typically means you are more likely to file claims in the future, which means you are a higher risk.  As a result, your homeowners insurance rate will typically be higher than someone with limited or no claims history.

Type of Dog- If you are a dog owner, be aware that certain breeds of dogs are considered more dangerous than others.  If you are the owner of a “dangerous” breed of dog, there is a higher risk of a loss occurring as a result (ex: A dog bite to a guest) and that will typically correlate to a higher insurance premium rate.  If you have questions regarding which dog breeds are considered “dangerous” it is recommended you contact your local N.C. independent insurance agent.

Amount of Deductible– A deductible is the amount you agree to pay out of pocket before any claim payment is issued on a covered loss to your home.  For example, if you have a $1000 deductible and the loss you suffered is $10,000, you will pay the first $1000 of the loss with the insurer paying the remaining amount of $9,000.  The higher deductible you choose, the lower your insurance premium will typically be on your N.C. homeowners policy.

Homeowners Insurance is Our Business

Keep in mind that all insurance companies rate differently.  The good news is that Twin City Insurance is a N.C. independent insurance agency who can shop your homeowners insurance coverage to find the best coverage at an affordable rate to you.  We will work for you and with you to ensure you have the right insurance protection for all your home needs.  If you have any questions regarding rating factors, please contact us at 828-464-2643.