Are you interested in homeowners insurance but not sure how much it might cost you? Homeowners insurance policies vary greatly from company to company and house to house, depending on quite a few factors.
Our independent South Florida insurance company, The Gordon Agency, aims to help keep you informed on your best options. Read on as our Florida homeowners insurance agency team will cover the five critical factors that affect your South Florida homeowners policy costs. If you’d like an exact estimate for your Boca Raton home, contact us today at (561) 988-3330 for a quote!
1. Property Value
The first factor you must consider is your home’s replacement cost. With homeowners insurance, you pay a regular fee, and if something happens to your property, the insurance company will cover the cost to repair or replace the damage to the extent specified in your policy. The more your home costs, the more you must pay each month or year to insure it.
When it comes to property replacement costs, you should consider:
- The house’s current market value
- All included asset values (electronics, jewelry, art, etc.)
- The property location
- The house’s age
- The building materials and structural integrity
- Any modern safety enhancements, like burglar alarms
When considering location, keep in mind that the closer you are to a fire station, the lower risk your home will appear to have in the eyes of an insurance company. Similarly, living close to hazards can increase costs. For example, coastal homes may cost more to insure because they have higher flood and hurricane risks.
2. Credit Scores, Credit-Based Insurance Scores, & Claim History
Much like when you apply for a home or auto loan, many insurance companies examine your credit score or your credit-based insurance score to determine how much of a risk it will be to insure your house. A higher score should have a lowering effect on the cost of your homeowners policy. Your insurance score suggests two things:
- Your probability of making each payment on time
- Your likelihood of filing claims
Insurance companies look at your past claims to better understand what expenses they might incur in the future. If you have a history of filing claims, there is a perceived higher risk you will do so again, and the company might respond by charging you more. Your claim history can follow you from past homes.
3. Marital Status and Household Occupants
Insurance companies find that, statistically, married couples typically file fewer claims than single people. Because of this, your marital status might impact your rates. A married couple should expect lower costs than a single person.
Liability coverage takes care of medical bills if someone gets hurt on your property. Since homeowners insurance frequently includes liability coverage, many insurance companies will also increase rates if you own certain pets. Some insurance companies see aggressive pet breeds as increased claim risks and will require higher premiums.
4. The Deductible for Florida Homeowners Insurance
The deductible is the amount of money you must pay out-of-pocket before the insurance company will cover damages. For example, if a hurricane hits your South Florida home and leaves you with $20,000 worth of damage, your insurance company may require that you pay the first $1,000 or commonly 2% of the dwelling coverage limit.
Deductible rates vary from policy to policy. The lower your deductible, the more you may have to pay each period. If you sign up for a high deductible, you can reduce your recurring costs, though you should prepare to spend more money if disaster strikes.
Some insurers will reward you for not filing claims by lowering your deductible amount. This is sometimes referred to as a diminishing deductible. For example, if your deductible is $1,000 but you do not file a claim for five years, an insurance company might eventually reduce it to an amount closer to $500 because you’ve proven yourself to be low-risk.
5. Homeowners Insurance Coverage Level
Homeowners insurance is a broad category that can include many different types of coverage. Your coverage level will directly affect your plan’s costs. The more comprehensive coverage you choose, the more you will pay. Our team can help you determine the best homeowners insurance that is right for your needs.
Typically, you can choose to cover some of the following items:
- Your house
- Your personal items
- Potential loss of use due to damage
- Property liability
- Other buildings on your property
- Flood and hurricane damage
Keep in mind that certain home lenders might require that you obtain a certain level of home insurance coverage to receive the loan.
Sign Up for the Best South Florida Homeowners Insurance With The Gordon Agency!
Once you’re ready to find out how much homeowners insurance will cost you, our team at The Gordon Agency is here to help. We provide top-notch homeowners insurance policies at affordable prices around Boca Raton, Florida.
Our company aims to protect you and your most important belongings. Contact us today to receive a quote for your home. You can call our team at (561) 988-3330 or contact us online to schedule an appointment.
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