What determines your home insurance policy cost?
The insurance companies use a whole set of factors to determine the price of your future home insurance policy:
- The entire are of the house and additional structures to be insured in square foots.
- Costs of building structures in the area.
- The construction, features and materials of your home.
- Crime rates in the area.
- The probability of a natural disaster to damage your house.
- Factors determining the speed of putting out a fire if occurs (proximity to a hydrant, proximity to a fire fighting station, etc.)
- The current state of the heating, electrical and electrical systems.
In case you rent a house or apartment, live in a condo or co-op, the insurance company will not take the square footage or building costs into account. However, the factors influencing the likelihood of damage to your property will be considered more attentively.