"Home insurance premiums are directly affected by the home's age, location, and the owner's insurance claim history,"
"For example, homes in areas prone to fires or other disasters will be subject to higher insurance premiums."
"The owners claim history similarly affects the premium amount due to the reality that homeowners with a high volume of claims tend to continue to file more claims than other homeowners,"
"In short, the price of your insurance is based on both the frequency and magnitude of the claims the insurer expects you to file."
Home insurance premiums represent an insurer's prediction of how likely a homeowner is to file a claim and how costly that claim might be. Insurers evaluate property details such as age, construction, location, and exposure to environmental hazards or regional disasters. Insurers also incorporate owner and property claims history because past claim frequency and severity inform future expectations. Premiums reflect the expected payout derived from probability and projected cost. Buyers should account for insurance costs when comparing financing options, gather property and claims information, and ask targeted questions before requesting quotes.
Read at Redfin | Real Estate Tips for Home Buying, Selling & More
Unable to calculate read time
Collection
[
|
...
]