How are Home Insurance Premiums Determined?

Home insurance is something that every homeowner needs even if they have paid for their home in full and are not required to hold a policy. Home insurance can make a huge difference in the recovery process after your home is damaged or destroyed and for those in the Kissimmee, FL area, the agents with Familia Insurance Agency can help you find the coverage that is right for you.

Home insurance does have a monthly or yearly premium depending on how you want to approach the payment process. Your premiums are determined by a few different factors but the main factor is going to be your actual coverage. To determine how much coverage you need, your insurance agent will take rebuild cost of your home, materials that make up your home, and the overall age of your home. These are all going to factor into the cost of your home and the value that will help calculate coverage.

The next thing that an agent will look at is fire protection in your area, how far from your home is a fire department or a fire hydrant, this will help determine how quickly help could get to you in the event of a fire. Still another factor taken into account is how many and what types of pets you have, the claims history of your area, your personal claims history, and your history with the insurance company.

Having a higher deductible can help lower your premium and so can improving your credit score, security devices in your home, bundled policies and more. Your home insurance is important and knowing how premiums are calculated can help you understand a bit more. The agents with Familia Insurance Agency in the Kissimmee, FL area can help you find your coverage.