What Can Affect the Premium I Pay for Homeowners Insurance?
There are many factors that can affect the premium you pay for homeowners insurance in Georgia. Some of the factors are the home’s construction type, year the home was built and if updated, location of home, details of the home, any additional risks you may have, size of the land your home is on, and your history.
Some home construction type examples are frame, joisted masonry, mobile, or log. Frame is one of the most common types of construction for homes due to the relative ease of building in Georgia. Each of these construction types can have different costs to re-build after a covered loss. If there were a fire in each of these types of construction the way and the cost to rebuild may be different.
If your home in Georgia is brand new construction with all the current building codes it may be rated differently than a 60-year-old home without electrical or plumbing updates. If you have a new roof on your home, many insurance companies like new roofs, and may price accordingly. Insurance looks at risk as part of rating, and age and updates can be possible components.
The location of your home also can affect your home insurance premium. The county or city you live in and their fire class code can be calculated into your premium. Proximity to the nearest fire hydrant and fire station also may be included. Is your home in a remote area and difficult to get to if there was a fire? Do you live near the Georgia coast and may be more susceptible to hurricanes?
The details of your home including square footage, foundation type, number of bathrooms and kitchens, type and quality of materials, any attached or detached structures are part of the cost you pay for home insurance. If you have builder-grade bathrooms and kitchen the cost to rebuild can be quite different from a home of similar size with designer bathrooms and kitchen. Some home details like heating type can affect your insurance as well.
If you have any additional risks at your home this can affect the premium on your insurance. Do you have a pool or hot tub? Do you have a trampoline or a dog? Most insurance companies ask about these, and may rate accordingly on your home insurance. If you have certain animals some insurance companies may not offer you insurance or you may be offered a higher risk policy.
Home insurance does not include the land your home is on as part of the replacement cost, but the size of the land your home is on may dictate the type of insurance policy. Some insurance companies require a farm insurance policy if the land your home is on is over a certain acreage.
Some other factors in home insurance relate to your personal history. Insurance companies look at if you did or didn’t have continuous insurance, and was there a need for insurance? Most insurance companies look at your claim's history. Also, some insurance companies pull driving history into the cost of your home insurance. Most companies do a “soft” credit inquiry called an “insurance score” and use this to help calculate home insurance rates.
These are some of the factors you may or may not be aware of that affect homeowners insurance premiums. Give our office a call at 770-479-0985 if you have any questions or if you would like a quote for home insurance in Georgia.