Factors affecting the Cost of Home Insurance Premiums

By | August 25, 2010

Home insurance is used for protecting the home against the disasters. For getting a home insurance, the premiums are to be paid. These premiums vary and differ because of the various factors. Let us discuss some of the factors which affect the cost of the Home insurance premiums.

Location of the living: The cost of the insurance premium varies from neighborhood to neighborhood, city to villages. According to the number of claims, types and cost of the claims the neighborhood, claim of the insured will depend. As the insurers will have a previous record regarding the claims of the neighborhood, they will calculate the frequency of the claim insured and will decide the premium cost.

Availability of water: In the cases of fire accidents, the water availability for putting off the fire also plays an important role. In the urban areas the proximity of fire hydrants and the fire stations is more, so, less will be the insurance premiums cost when compared to the country side places.

Heating: Less risk is associated if we go for the heating with the electric or gas furnace. But if oil is used chances of occurrence of risks are more. So, oil heating has more premium when compared to the gas or electric furnace heating.

Electricity: Premium cost of the home insurance vary depending on the usage of fuses or breakers, depending on the number of amperes of current flowing, depending on the wiring of the circuit. More the safety, less is the insurance premium. All the factors like lower amps, older wiring circuits, using of fuses can lead to firing. So, better check those, so the cost of the insurance premium reduces.

Updated roof: If the roof of the house has been updated within the period of 20 years, then in those cases, chances of collapsing are less and the insurance premiums are also low.

House features: Depending on the features like size and composition of the house, contents of the home etc., the insurance premium will vary. Larger the house and number of the contents are more then the replacement cost or the cost of the premium will be more.

By following the safety measures like using fire alarms or the safety alarms and also using the measures which prevents accidents, the cost of the premiums will also decrease.