Pricing
Coverage Pricing is based on:
Location of the Home- Fire (ISO) Codes and Other Location Information
Value of the Home-The dwelling coverage amount has a direct coorelation to the policy price.
Coverage Selected-Liability Limits, Loss Assessment Coverage, Lock Rekey for stolen keys, Scheduled Personal Property values (Wedding Band or other Jewelry), Identity Protection, and other additional coverage.
Deductible- Deductible levels provide a wide variety of prices. $500.00 – $5,000.00 deductible could provide pricing changes of over 50%. The higher the deductible the lower the price.
Loss History- The absence of prior claims in the last 3-5 years has a significant on the cost of the homeowner policy.
Prior Insurance- Having property insurance without a lapse in coverage shows an insurance company that you understand the importance of having coverage. There are discounts to new property insurance policy when there is not lapse in coverage.
Security Devices- Dead bolt locks, Monitored or non-monitored alarm system, home sprinkler system
Home Construction-Solid Brick has huge discounts, Brick veneer has good associated discounts, while wood siding may not carry as high of a discount.
Multi-Policy Discounts- Having related home and auto policies with the same carrier positions the insured with additional discounts. These same policies can provide additional discounts on boat insurance, motorcycle insurance, pwc insurance, other other powersport coverage.
Credit Worthiness of the Insured- (we do not ask for or require social security numbers) The indebtedness of the insured can pose additional risks for loss. Debt ratios and the amount of credit used vs. available credit can play into the pricing of the homeowner policy.
January 10 2009 06:38 pm | coverage and mulit-policy discount and Pricing
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