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Factors that Affect Your Home Insurance Premium

Here are some of the factors that affect your home insurance rates.

Ever wonder why your home insurance agent asks you such strange questions?  Well, these seemingly random questions are all part of calculating your home insurance premium.  Generally, insurance companies base your premium off of your individual risk factors.  Curious to know which factors are affecting your premium?  Read on to find out.

1) Your Age

Typically, insurance agencies consider younger, first time homeowners as riskier to insure.  This means that younger homeowners should expect to pay higher premiums than older, more established homeowners.

2) Your Pets

If you have a pet, specifically a dog, you should expect to have higher rates than someone without a pet.  Pets are considered higher risk because of the potential damage they could do to your home.  Additionally, if you have a particularly large dog or if your dog is a breed deemed “dangerous,” then certain insurance companies might refuse to cover you at all.

3) Your Lifestyle

When you’re going through the home insurance process, you should expect to answer some questions about your lifestyle.  While these questions may seem random or too personal, they are all part of the premium calculation process.  For instance, your insurance agent might ask if you’re a smoker.  If you are, then your rates will be higher than a non-smoker because you have an increased risk of a house fire.

4) Your Home’s Location

If your home is right on a fault line or in the middle of a high flood risk area, then your premiums will be higher because you have increased risk for damage.  Additionally, if your home is in a more dangerous part of town, your rates may also be on the higher side due to your increased risk for vandalism or theft.

These are just a few of the factors that can affect your home insurance premium.  Once you understand how your rates are calculated, it’s possible to mitigate your risk and lower your insurance rates.  To find the best home insurance policy to fit your needs, contact Bell Black Insurance today!  We serve all insurance needs for those in Idaho Falls, Island Park, Driggs, Victor, Swan Valley, Ashton, and the neighboring communities in Idaho, as well as Jackson and Star Valley in Wyoming.

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