Factors Affecting Home insurance
Out of several insurance policies available in the market, home insurance is quite common these days. Given the prevalence of natural disasters these days, getting your home insured might prove to be a very prudent step. Just make sure that the policy is comprehensive in its coverage and also insures the contents of your home in case of any natural disaster. As of now, we have compiled a list of five factors which may affect your home insurance premium:
- Safety devices: Those having safety devices installed in their houses have to pay lesser premiums for their home insurance policy. These safety devices include burglar alarm, fire extinguishers, smoke detectors, standard locks, etc.
- Claims History: Those having history of insurance claims with their prior policies may have to shell out more money to pay higher premiums.
- Location: House located in close proximity to disaster prone areas may have to pay more premiums. There are other places which are prone to extreme weather phenomenon. Few of them are notorious for many anti-social elements like thieves, dacoits and burglars. Homeowners of these localities have to pay higher premiums for their insurance policies.
- Condition of your Home: Insurance companies always ask for the age of your house, materials used for floor ceiling, and the type of structure. They also inquire about the precautionary measures taken by the builder while building it. All these factors determine the amount of premium one will have to pay for the policy.
- Personal Factors: Those having a sound metal and physical condition and non-smokers may have to pay lesser premiums. Insurance agents also inquire about the credit history and the financial strength of the homeowners.
- Coverage: The coverage factor also determines the rate of premium for your insurance policy. Usually the home insurance also covers the household goods and other appliances.
One must always compare the policies offered by different insurance companies and their respective terms and conditions. There are several insurance agencies based in Anaheim and California providing home loans. Home loan, unlike the car loan, is not mandatory under the law. But at the same time there are several home loan providers who mandate the borrowers to get the home insured. In any case, it is always prudent to get your home insured to avoid any unfortunate event.
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