When seeking homeowner’s insurance, it is important for you to understand the variables that may affect your rates. Understanding these factors will not only help you make an informed decision but also keep you from falling into the pitfall of comparing your rates to those of your friends and/or family members and wondering which one of you went wrong. In many situations, the answer is that neither one of you went wrong, but that you are dealing with a completely different set of variables.
Allow me to illustrate by detailing just four of the factors.
Four Variables that Affect Homeowner’s Insurance Rates:
Variable 1: Location, location, location. What holds true in real estate also holds true in the insurance markets: it’s all about location. First, your state standards must be taken into consideration. Then, we look at your region to see if you’re in an area more prone to certain types of extreme weather conditions, such as hurricanes, flooding, tornadoes, or storm surge. Then we look closer to home. How close are you to the local fire department? What are the crime rates in your neighborhood?
Variable 2: Age and maintenance. Insurers look at more than just the age of the house itself: they consider the roof, the plumbing, the electrical wiring, and so forth. All these factors come into play when determining rates.
Variable 3: Contents. What’s inside the house often plays a role in determining how much the home will cost to insure. This brings us to Variable 4, which is connected.
Variable 4: Security. Maintaining a security system that automatically contacts the authorities in the event of a breech can often lead to discounts on your premiums. Additional measures such as living in a gated community with restricted access can also be a factor.
Robert Macoviak is the President of Oyer, Macoviak and Associates. Oyer, Macoviak and Associates is the oldest independent insurance agency in Boynton Beach and has been in business since 1953. Oyer, Macoviak and Associates are vested members of the community who are committed to doing business face-to-face and being your insurance advocate in times of need.