Factors that Affect Home Insurance Rates
Introduction With so much information available about ‘all things car insurance’ it’s easy for your home insurance to take a back seat. In reality, your home is worth much more than your car, and just because you don’t drive it around on the streets everyday doesn’t mean your home insurance isn’t important. Keep reading to learn the basics of home insurance, and the factors that typically affect how much you pay. Once you know the factors, you’ll also know ways you can pay less.
Basic Home Insurance Information According to the Financial Consumer Agency of Canada, you should have enough home insurance to cover the expense of replacing every possession you own if it were destroyed or stolen. You should also have enough insurance to cover any potential liability to others. The amount you receive when you make a claim depends on whether you have an actual cash value policy or replacement value policy. One will replace the item you lost, one will give you the cash value of what it was worth when you lost it. An actual cash value policy might cost less, but you’ll generally receive less back.
Basic Home Insurance Information Generally speaking, home insurance covers: •Damage, theft or loss to personal possessions. •Personal property that is stolen directly from your vehicle. •Accidental damage you might cause to someone else’s property. This includes fire damage to neighboring homes if your house catches on fire. •Injuries to people while they’re on your property, such as slip and fall accidents.
The Financial Consumer Agency of Canada states that most financial institutions won’t grant you a mortgage if you don’t show proof of home insurance.
Factors Affecting Home Insurance The Insurance Bureau of Canada lists the following factors as being the primary ones affecting the price you pay for home insurance. •Home Location – Insurance providers keep statistics on things like number of claims filed by neighborhood, so where you live makes a difference. •Replacement Cost – Naturally, the size of your home and volume of contents are the biggest factor as far as home insurance rates are concerned. Basically, the more it will cost to replace, the more you will pay.
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Water Sources – Since living closer to hydrants increases the chances of saving your home in a fire, the farther away from a viable water source you are, the more you’ll pay. Heat & Electricity – Fewer and fewer homes are being heated by oil, but if yours is one of them you can expect to pay more for home insurance. Whether you have breakers or fuses will also play a role in what you pay. Expect to answer many questions about heating and electricity. Plumbing – The older the pipes, the more likely they are to crack and leak and the more you’ll pay to insure the home.
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The Roof – According to the Insurance Bureau of Canada, if your roof has been updated within the past 20 years, it shouldn’t affect your rates. Security – Alarms, dogs or other methods of home protection are looked upon favorably by your insurance company. Type of Coverage – The type of coverage you ultimately choose will determine the type of coverage you have and the amount you have to pay. Unlike car insurance, there are no laws dictating how much you must have, so it’s up to the homeowner whether they want more basic or comprehensive coverage.
Finding a Provider As with car insurance, it usually pays to shop around a bit when selecting home insurance. You’ll want a company that has experience and a good reputation in the community, and depending on your circumstance you may also need one that can think outside the box.
Finding a Provider Creative Insurance Group, which provides home insurance in Edmonton, states that not all insurance companies will accept you as a client. Sometimes, if you don’t fit a certain mold, you might be refused and have to look for a provider that offers non-standard or high risk home insurance. If you find yourself in that position, keep looking and you’ll find a provider that will give you everything you need.
Advice Creative Insurance Group Ltd. is an Alberta based insurance broker specializing in DUI / impaired driving insurance, high risk house insurance / hard to place house insurance. Visit http://www.creativeinsurance.ca/ for a quote. They are located at 4365 99 Street Northwest Edmonton, AB T6E 5E4 (780) 988-1111