Features of your home such as its age, construction type, construction materials (wiring, insulation, etc.), square footage, heating/cooling sources, security systems, and smoke or fire detection devices.
Older homes garner higher rates due to the type of materials used. Outdated wiring, asbestos insulation, lead paint, and other elements that are no longer considered safe within living quarters can all have an adverse affect on rating your policy.
Geographical Location determines risk of loss due to natural disasters. Homes located close in proximity to flood zones, earthquake zones, or areas where natural disasters are more likely to occur may not be able to get coverage under a typical homeowners insurance policy.
Public Protection Class Rating ranks the level of fire protection in proximity to your home on a scale of 1 to 10. 1 signifies a fast response and 10 represents no responding fire department within 10 miles, and no fire hydrants within 1000 feet of your home. If the fire department is close to the home, it is probable that a fire would be extinguished before burning the home to the ground.
Credit and Loss Reports such as credit reports and past history with past insurers are evaluated and rated according to the individual insurer’s underwriting practices. Bad credit equals higher rates. Policy lapses or cancellations for nonpayment place you in a higher risk category. Records from past insurers, called loss histories, show past claims, and are used to determine the level of risk you bring to the table.
Property Limits for current replacement costs multiplied by 100%. Newer homes can be insured for 100% of replacement cost. Insurers may not offer 100% replacement cost on older homes, due to the availability of like materials and cost of replicating special details commonly found in older structures. Adding Guaranteed Replacement Cost coverage or Inflation Guard coverage eliminates the possibility of being under-insured at the time of an actual loss. The limit for personal property (contents of the home) is generally set at 50% of the property limit, and is rated depending upon whether Replacement Cost or Actual Cash Value coverage is selected.
Liability Coverage evaluates any possible risks around or inside the home that could cause injury to anyone visiting the home. Dogs are generally the biggest risk, where liability is concerned. Depending upon the breed of dog, some insurers may exclude dog bites or attacks from coverage. Entryways, sidewalks and floors may also be considered, due to the potential for injuries from falls.