How Your N.C. Homeowners Insurance Rate is CalculatedIf you are a homeowner, you understand the importance of protecting your investment with the right type of homeowners insurance, but when you pay your homeowners premium, do you ever wonder how that amount was established?  Keep in mind that while many insurance companies may rate differently, they all have some common variables that you should know that may shed light on your N.C. homeowners insurance rate and how it is calculated.

7 Rating Factors That May Impact Your Homeowners Insurance Premium

If you are already a homeowner or in the market to purchase a home, then you may be surprised to find that you may pay more or less on your insurance premium than your next-door neighbor with a similar home.  Below are some factors that may influence your homeowners insurance rate, some of which you can control and others you can’t.

Marital Status- Findings show that married homeowners typically have a lower claims history than those single homeowners. 

Dog Breed- If you are a beloved dog owner, nobody suggests you should get rid of your pet in an effort to get a reduced insurance premium; however, as a dog owner, you need to be aware that certain breeds of dogs are considered more dangerous than others and are considered a higher risk for claims.  One of the top homeowners claims is due to injuries from dog bites.  This, in turn, correlates to a higher risk factor for claims and thus a higher premium rate. If you have questions regarding your specific dog breed, you can give our office a call for assistance.

Past Claims History- Studies show that your past claims history is a clear indicator of your future likelihood of claims presented. Someone who has filed numerous claims in the past is seen as a higher risk to continue the trend.  As a result, your N.C. homeowners insurance rate will typically be higher than someone with limited or no claims history.

Age of Your Home– Typically owners of older homes have more homeowners insurance claims than new home owners.  It makes sense that with increasing age of a home, more things could go wrong and when it does, the repairs are likely to be more costly than that of a newer home due to materials.  So, if you own an older home or contemplating the purchase of an older home, you can expect to pay a higher insurance premium.

Age of Roof- If you are currently a homeowner or in the market to buy a home, the age and condition of your roof impacts your homeowners insurance premium.  When your home is purchased, the roof is thoroughly inspected for signs of deterioration, age, and rot/damage.  If the home’s roof is in need of repairs or replacement, then the risk factor for a homeowners claim is higher than the home with a newer roof.  An older roof increases the likelihood of a claim caused by wind or other weather factors.

Deductible Amount– This is a factor you can control.  A deductible is the amount you agree to absorb out of pocket for a covered claim before any claim payment is issued.  The lower the deductible, the higher your insurance premium.  Consider increasing your deductible if at all possible, in an effort to save some money.  If you have questions on deductible amounts, call our office to see how adjusting your deductible can save you money.

Amount of Liability Limits- It is always wise to consider getting the highest amount of liability limits that you can possibly afford in an effort to protect you against claims for injuries and damages that take place in your home and on your property. If you have a guest at your house and the guest falls down your steps, you need to know you have adequate liability insurance limits on your N.C. homeowners insurance policy.  Those rising medical bills or legal fees could come out of your pocket if you have inadequate protection.

Homeowner Insurance Rates You Can Understand

Paramount Insurance Agency understands all your N.C. homeowners insurance needs and is here to assist you with any questions you may have regarding any rating factors impacting your home insurance premium.  We are an independent insurance agency that works with you and for you to find the best N.C. homeowners insurance coverage at a rate you can afford.  Call us TODAY at 336-869-3335.