A variety of factors are considered when your agent is pricing out your homeowners insurance. Basically, they are trying to answer two key questions: How likely is this person to have a claim at some point and how much will that claim cost. Here are those answers broken down in a few ways: 

Large, expensive homes = more expensive to repair = RISK 

Location, location, location = homes near coastal regions or wooded areas = RISK 

Trampolines and swimming pools = you like to have fun, but the risk of injury is higher = RISK 

Prior claims = more likely to file another = RISK 

Type of home = certain construction materials, siding, and other specs could determine the value of your home.

Other risk factors include age of home, condition of the roof, and proximity to a fire station (weird but true).

The bottom line is that homes with a greater risk of damage could lead to more claims. So these homes may have higher rates when it comes to insuring the property.

Want to know more?

If you want to know more about the ways insurance companies evaluate your home and property in order to determine the price of insurance, just ask. Our agents would be happy to provide you with more information.

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