Home Insurance Articles
What Statistics Are The Most Influential To Your Home Insurance Rates
2010-03-18
Home insurance coverage is a necessity. Whether you have a mortgage on your home or have completely finished paying off your home, home insurance is extremely important. However, what your home insurance rates will be and how much it will cost you are affected by a few different statistics.
Your home insurance coverage can be affected by the zip code you live in. If the area has been found to have higher or lower crime rates, accidents, heavy traffic or numerous schools within the area, the home insurance rates can increase or decrease accordingly. For example, the lower the crime rate the better the insurance premium will be, since there will be less chance of a break-in or other robbery. This is true of car accidents and heavy traffic areas, where the likelihood of an accident that can damage property may occur. The more accidents and traffic there is, the higher the premium may be. Areas that are heavily populated with families can have an affect on insurance as well. This will depend on the age of the majority of the children in that area. For instance, an area with multiple elementary schools but few high schools, have a lower chance that their insurance premium will be affected negatively. This is because teens are more likely to commit crimes and damage property. So, a home in an area that is heavily populated with middle schools and high schools may have a higher insurance premium.
Furthermore, the type of dog you own, want to own or the dogs that are within the area, can affect the insurance as well. The type of dog you own can increase or decrease the insurance cost. Dog breeds that are considered higher risk may affect insurance negatively. However, having a dog in general can affect the insurance too, depending on the insurance company, because dogs can do damage to homes. However, if the area has had numerous dog attacks or your dog has attacked someone or another animal, the risk has gone up that there could be a problem, therefore increasing the insurance premium also. Lastly, if you have ever had a claim on your home or a previous home, this can cause the rates to go up as well. This is because once a claim has been made, the chances of another claim being made are considered to have increased.
Again, home insurance is very important and is a must have for any home owner. But there are numerous variables that can affect the cost of the insurance and the type of home owners insurance you are able to purchase. Taking all these into account is very important when looking to buy a home or purchase insurance.