Owning a home has been a dream of the American citizen for many years. During the 1950s, this idea of home ownership was placed directly at the center of the American Dream. Millions of Americans have found that owning a home, while fulfilling a tremendous part of their American Dream, can be a complicated and sometimes cruel experience if you don’t know everything you need to know about homeowners insurance and homeowners insurance solutions.
To give an example, according to an Insurance Information Institue survey done in 2016, 21% of homeowners did not understand that their insurance would provide coverage to them if they had possessions stolen during a home burglary. At the same time, many homeowners do not realize that most policies have a window of 14 days during which homeowners must report a claim. This is to ensure that damage won’t get worse over time.
If you own a home or are about to become a homeowner and you are looking for insurance options, understand that there are several factors that will determine the cost of your insurance policy. Here are for of the biggest factors that influence the cost.
1.) The estimated rebuild cost
Not all homeowners insurance solutions are the same, because not all homes are alike. In order to determine how much you will be charged for your homeowners insurance policy, what has to be taken into account is how much it would cost to rebuild your home in the event it is destroyed by some kind of a catastrophe, like a fire or a severe flood.
2.)The age of your home
When you think about the age of your home, you understand that as time goes by, age can take its toll and the risk of damage goes up. This will affect the price of your policy when you search for homeowners insurance solutions.
3.)Your neighborhood’s fire protection rating
This one is interesting because it is not completely dependent on your house all by itself, though you can reduce your risk of fire damage by consulting qualified fire sprinkler contractors. If your neighborhood is in a potential high fire area, the price of your policy will likely be high than if you were in a different location.
If you have a number of claims in your history or if the neighborhood boasts a large number of previous claims, that will affect your insurance policy. The less likely an insurance company is to have to pay out, the lower the costs will be.