HOMEOWNERS INSURANCE – How rates are calculated

Many factors are considered in calculating the cost of home owner’s insurance, such as:

  • Credit Scores – review your credit report annually, and clean-up as needed.
  • Location – is your home, or the one you are considering purchasing, in-town or in a high fire risk area?
  • Prior claims – either by the policy holder or the property can increase rates.
  • Age and condition – if the home’s major systems or roof are 40+ years old, or if there is too much deferred maintenance, premiums will rise or coverage can be declined.
  • Construction type – unique types of homes (log, hay bale, rammed earth) can be more difficult or expensive to insure.
  • Professional discounts – some occupations, like Teachers, Physicians, Scientists, Police Officers, Firefighters, Accountants, Engineers and Registered Nurses, may be able to receive a discounted premium.

If you are house hunting it is worth shopping for insurance. Your Insurance Agent will provide a binder as “evidence of insurance” once you are under contract to purchase a home.

Source:  FARMERS Insurance Agent Ben Frihauf in Durango, CO


Post courtesy of Jim Wotkyns Blog.  Read more here or search Durango real estate.

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