There are many factors that contribute to property insurance premiums. It includes information on the home itself and on the property owner. Things that change property insurance premiums in PA is detailed in this article and may be helpful for both new and existing property owners.
Property Characteristics
Insurance companies may inquire about different features of a home from essential systems to upgrades installed. Younger homes are usually less to insure than older homes because they include more modern safety measures and materials. Newer plumbing, electrical, and heating units often minimize the risk of fire and other issues. Fire resistant construction, such as brick, will also lower insurance premiums. High end upgrades, however, may result in higher premiums because it increases the replacement value of a home.
The physical location of a structure influences the estimated danger of forest fires, theft, natural disasters, etc. Insurance companies will typically estimate the distance from the nearest fire station or hydrant. Quick response times can reduce the damage caused, which can reduce the cost of any claims filed. If you live in an area common to hurricanes, tornadoes, or brush fires, your insurance costs will normally be greater (certain conditions require add-on coverage riders).
Facts on the Homeowner
Insurance companies will review some personal factors as well. The first is the history of filing property insurance claims. In the eyes of insurance companies, those with past claims are likely to initiate additional claims. Therefore, those with a history should be assessed a higher premium. In some cases, they can even be refused coverage.
Credit scores are the second factor. Historically homeowners with higher credit scores create fewer insurance claims. They are therefore less costly to insure and will receive less expensive insurance rates.
Why It Is Helpful to Understand Things That Change Property Insurance Premiums In PA
Knowing what influences insurance calculations will help you save money. When looking for a home to buy, it is a good idea to obtain a general estimate. This can affect your monthly home costs and can even dictate if you may purchase a certain house. If you are an existing homeowner, think about not starting claims against your current policy unless the damage is high. Submitting minor claims can end up hurting you more in the long run. Also, always work on improving and or maintaining your credit score. All of this can help save on property insurance premiums. Things that change property insurance premiums in PA, as discussed in this blog, is provided strictly as an introduction. Consult with your insurance company for more comprehensive facts.
