5 Things That Impact Your Home Insurance Premium

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Home insurance covers a private residence. With various protections combined, in most cases you are protected against the loss of the home, loss of use (additional living expenses), loss of the contents of the home, or loss of the homeowner’s or tenant’s other personal possessions. The home owner also has liability insurance for any accident which takes place at the home or at the homeowner’s hands.

Some of the disasters that can be covered in a full home insurance policy are fire; impact damage; lightning, severe thunderstorms, hurricanes, tornado, flood (call for additional information) and water damage, fire, malicious vandalism damage etc. If you have a question about a specific type of coverage, Mattis Insurance Agency has an experienced, bi-lingual staff ready to answer all your insurance question. Contact us today!

The Home Insurance Premium

Many if not all local home associates require some form of home insurance. Aside from the local requirement, there are many benefits to having a home insurance policy optimized to your exact needs. The cost of obtainin the premium depends on certain factors. Being able to communicate those factors to your agent and then managing those factors could go a long way in reducing your premium.

Your Home’s Claim History

Insurance companies consider a home with frequent claims in the past to be of high risk. A property with many incidents related to fires, vandalism or theft in the past is believed to require claims many times in the future. This is a situation in which insurance companies are not always too comfortable. Therefore, such high-risk homes are always subjected to high insurance premiums. It is always recommended that before you buy a property, it is necessary to check its claim history to know how expensive it could cost you to get the property insured.

Your Occupation

The occupation of the homeowner is another thing which impacts his home insurance premium. Based on studies, certain professions such as law enforcement or fire service are noble, with the officers taking necessary precautions and providing security for their homes. A fire service officer ensures that fire alarm gadgets are installed, thus preventing serious cases of fire accidents. The fire fighter is also likely to ensure that his tenants follow the same rules, taking precautions to ensure that accidents are prevented. Insurance companies consider the profile of the homeowner, and would always be willing to offer affordable premium. If you feel that your profession could warrant a discount, please call Mattis Insurance and lets chat. We are confident that with a quick 5 minute conversation that we can get your insurance coverage optimized for your current occupation.

Your Credit Score

Your credit score is another factor which will impact your home insurance premium. It is believed that people with low credit score are more likely to file a claim than those with good credit score. Therefore, to reduce your premium, it is necessary to build an above average credit score. Showing the ability to maintain a high credit score makes you more attractive as a low-risk client

Level of Education

The level of education of the homeowner is another factor which impacts the home insurance premium. Based on statistics, people who are well educated file fewer claim, meaning that they are of lower risk. Unfortunately, those who have not gone as far in school are higher risk based on statistics. An educated person usually knows what precautions he needs to take to secure his home, thus reducing the chances of accidents or damage. Also, educated people do not generally take things for granted, ensuring everything in the home is properly insured and cared for. They are usually the ones sought after by insurance companies, and are offered good deals that would encourage them to buy the necessary policies to protect their homes and belongings. If you have advanced degrees be sure to tell your agent at Mattis Insurance to make sure your premium is optimized based on your level of education.

The Age of the Property

Quality is another thing which affects home insurance premiums. A property recently built is believed to be supported by modern technologies which help prevent accidents or damage. This is not the case in homes that are many years old. Thus, insurance companies reduce premiums for new homes, as their risk is very low. An old building is more likely to be destroyed by natural disasters or fire accidents or easily vandalized, leading to a huge loss. In order to properly insure older homes, the premium is often higher. If you older home has upgrades, please let your agent know when you call Mattis Insurance. Many times, doing modern upgrades to older properties can have a drastic affect on your insurance premium.

Conclusion

Most of these factors help homeowners pay a lot less for the best insurance policies. Some other factors of the home, which might influence the premium, are replacement cost, location, proximity to water, and the presence of items such as electricity, pipes, and breakers. If you have a question about a specific type of coverage, Mattis Insurance Agency has an experienced, bi-lingual staff ready to answer all your insurance question. Contact us today!

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