A variety of factors will be considered by insurance companies when determining the cost of home insurance, and they will focus on information that will help them determine how likely you are to make a claim. They need to estimate how much that potential claim will cost, and the following are the top 5 factors insurance companies use to calculate your home insurance premium:
- Location: The location of your home will impact the cost of your home insurance. Insurance companies will use your postal code to assess the frequency of claims made in your area, and they will also look at the type of claims that are made and will determine how likely you are to make a similar claim. If you live in an area where flooding is a common concern, for example, your home insurance may be more expensive than others who do not live in a flood-prone area.
- Age: The age of your home is another big factor that will influence your home insurance premium, and the older a home, the higher your premium may be. Older homes have an increased risk of issues like leaky roofs, wiring, cracked foundations and faulty pipes, and this will increase your chances of making a claim. Newer homes are not as likely to face such problems, which is why owners of newer homes will usually pay lower premiums.
- Heating system: If your home has an oil heating system, your home insurance will be more expensive than homes with electric heat or gas furnaces. Oil tank leaks can damage property and its surrounding area, and your premium will be higher depending on the heating system in your home.
- Type of basement: Many homes have finished basements that are used for extra living space, offices or even home gyms. Finished basements contain more items than unfinished basements and also cost more to repair because of the types of building materials used. Making a claim for damages caused to a finished basement and its contents will likely be higher than a claim for damages to an unfinished basement, and this is why homeowners with finished basements will pay higher premiums.
- Distance between the home and a fire station/hydrant: The closer the home is to a fire station or hydrant, the better the chance of saving more of the property in the event of a fire. If you live in a rural area that is far away from a fire station or hydrant, your home insurance premium may be more expensive.
Get the Best Home Insurance Rates in Corner Brook with Crosbie Job Insurance!
Want to best home insurance premium rates in Corner Brook? Crosbie Job Insurance can help! We will discuss your property and the factors we use to calculate your premium and will do everything we can to provide our customers with the lowest rates.
We serve customers in the Corner Brook, Gander, Clarenville and St. Johns areas in Newfoundland and are always available to answer your questions.
Contact us at 709-726-5414 today to receive a home insurance quote!