Risk Factors
Certain everyday risk factors can have a large effect on your Homeowners Insurance premium. Risk factors are characteristics that make filing a claim more probable. These characteristics can range from the condition of your house to your financial standing. In order to save money on your
Homeowners Insurance, you need to know how to lower the risk factors that your insurance company sees. Bogle Agency Insurance offers the best Homeowners Insurance policies in NJ, with top carriers, but if you ignore the common risks affecting Homeowners Insurance premiums, you may pay more.
Some Common Risks Affecting Homeowners Insurance Are:
1. Deductible
An insurance policy deductible is the amount you pay before the policy
coverage kicks in. The reason for deductibles is to reduce negligence
in the care of the property by the policyholder. A higher deductible
means a lower premium.
2. Replacement Cost
This refers to the amount it would cost to rebuild your house. The more
expensive the item you are insuring becomes, the more the insurance
company would have to pay out in the event of a loss.
3. Condition Of The House
The condition of the house you are insuring is a major concern in
Homeowners Insurance policies. If there is damage to a part of
a home like the roof or foundation, insurance companies would take
that into consideration when determining the premium amount. This
damage should be seen to promptly, to avoid costly insurance caims
in the future. Some companies may deny coverage if there is serious
damage to the roof or foundation of a house.
4. Pets
Surprise – yes your pets can make your Homeowners Insurance cost more!
Certain dog breeds are considered more dangerous to the public than
others. This probably doesn’t apply to your dog but it is a factor
based on statistical analyses by insurance companies.
5. Proximity to a Fire Station
Another suprising risk factor that insurance companies take into
account when determining premium cost is travel time from the nearest
fire station to your home. According to insurance industry institutions
fire claims make up a substantial portion of property claims. The
distance from a fire house to your house may make the difference between
a total loss or only minor damage.
6. Credit History
Credit history is a factor in determining insurance rates. Payment
history, current debt and other elements are all considerations in how
much premiums will be. The thinking is that this reduces the risk of
fraud.
Risk Management Can Reduce Homeowners Insurance Premiums
If you do all you can to lessen the risk of an insurance claim, it may help
lower your insurance costs. Although some risk problems are more easily
fixed, you should be aware that knowing about these risk factors and working
to alleviate them, can lower Homeowners Insurance premiums over time.
Bogle Agency Insurance offers Homeowners Insurance to homeowners in Bergen
and Morris County NJ. We can help you discover potential risks you may face
before you have a high Homeowners Insurance premium. We are always working
to provide you with the best insurance coverage for the lowest price. If you
are looking for Homeowners Insurance give us a call at (201) 939-1076.