Among the many factors typically used to determine homeowner insurance rates, here are a few of the key ones:
Type of Construction, Age of Dwelling & Condition of Dwelling - Ex: Is the construction type 'fire resistant' rather than wood frame? Has the building been well cared-for?
Claims Submission History - Ex: Does the prospect have a history of submitting claims on a frequent basis...especially smaller ones?
Dwelling Location - Fire station proximity; History of frequent and /or severe losses in the area from wild fires, hurricanes, etc.
Credit History - Credit score - Prevailing underwriting theory is that better credit scores equate to less possibility of frequent claim submissions.
Additional Risk Factors - Swimming pools, with or without child safety devices; Questionable types of animals in terms of temperment, as relates to possible attacks on humans; Recreation equipment on premises - safety devices?
Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
There are two parts to this answer. The price is largely determined by the actuaries of an insurance company. The price represents the claims experience of the company in your area with homes that are of similar construction and value. The other side of the equation are the underwriters of the insurance company who look at individual characteristics to determine of the home meets the company standards. These two determine whether a home will be underwritten and at what price.
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Type of Construction, Age of Dwelling & Condition of Dwelling - Ex: Is the construction type 'fire resistant' rather than wood frame? Has the building been well cared-for?
Claims Submission History - Ex: Does the prospect have a history of submitting claims on a frequent basis...especially smaller ones?
Dwelling Location - Fire station proximity; History of frequent and /or severe losses in the area from wild fires, hurricanes, etc.
Credit History - Credit score - Prevailing underwriting theory is that better credit scores equate to less possibility of frequent claim submissions.
Additional Risk Factors - Swimming pools, with or without child safety devices; Questionable types of animals in terms of temperment, as relates to possible attacks on humans; Recreation equipment on premises - safety devices?