Do you have an insurance policy for your home in Champaign County? Many people wonder how insurance rates are calculated. It's actually quite complicated, as you probably already guessed. But it is all based on an algorithm that takes many variables into account.
If keeping your rates as low possible is your number one concern, you need to know about these four factors that can affect your bottom line.
It comes as no surprise that the age and condition of your Champaign County home is one of the main factors in determining your insurance rate. The age of your house and the wiring, pipes, roof, lumber, square footage, and even how many corners it has all play a role in the price of your insurance.
The older your home and its systems are, the higher the risk and the higher the cost of replacing or repairing your home.
It comes down to the risk associated with the house and the costs that come with repair or replacement. For example, if your home was built in 1920, it may have old pipes and wiring that aren’t up to code. These materials come with a much higher risk of damage or fire, so the insurance companies will charge more to insure it.
Sometimes certain breeds of dogs can bump up your premiums. Pit bulls and others potentially aggressive breeds have a reputation for being more high risk, and as such, come with larger liability concerns to your insurer, resulting in a higher rate. True, your beloved pooch may be the best dog ever. But some insurance firms base this on historic data.
Three things can happen if your dog is considered a “dangerous” dog breed: you could be charged a higher rate from your carrier, your provider may cover you but exclude any liability associated with the dog, or the carrier could decide not to insure you at all.
Pools, trampolines, and even backyard construction projects are in a category called attractive nuisances, which are recreational amenities added to a home that can raise liability concerns (and your rates) on behalf of an insurer. If there is something in your yard that can attract the attention of a minor and pose any level of danger, it will probably affect your insurance policy.
If your house were to catch fire, how long would it take for the local fire department to get there? The faster they can get there and handle the situation, the better chance they have of minimizing the damage.
Every homeowner’s policy requires what’s called a Public Protection Class (PPC) rating. A PPC is rated between 1-10 (one being the best) and takes factors like proximity to the fire department, proximity and number of fire hydrants, municipal water towers, and even railroad tracks into account.
In some cases, you may be able to make some changes to help lower your rates, but never lie or intentionally exclude key information on your application. This could result in your coverage or renewal getting denied. Be honest with your agent, and they will help you find the right coverage and rate that works for your needs.
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