There are a number of factors that can affect your Denver homeowners insurance premium. Below is a list of the most common factors with a description of how they can affect your premium either positively or negatively. The list will start with the most basic items and move down to items that very few people realize affect their premiums:
1. Amount of Coverage: The amount of coverage you buy for your house, its contents, and your personal liability insurance will affect your price.
2. Deductible Amount: Most people understand that the higher your deductible, the lower your premiums will be. It’s essential to remember, though, that the difference between a $500 deductible and a $2,500 deductible may only be like $50 a year. So, while it may be easy to raise your deductible to lower your premiums, the risk vs. reward may not be worth it.
3. Type of Construction: Wood frame houses are more susceptible to certain types of property damage than houses made of brick, stone, or stucco and are therefore priced higher than those types of houses.
4. Age and Condition of the House: New or remodeled homes typically have safety features to reduce risk, while older homes are more susceptible to damage. Also, older homes will typically have higher replacement costs in the event of a claim.
5. Recreation: Homes with pets or hazardous recreational equipment like a trampoline or pool increase the risk you present, and the insurance company will charge a higher premium to cover you.
6. Local Fire Protection: If your home is located more than five road miles from a responding fire station, then you are likely to pay more for home insurance. Also, if the fire department nearest to your home is a volunteer fire department, your premiums will be affected.
7. Geographic Location of the House: If your home is near a flood plain or other area susceptible to natural disasters, such as mudslides or earthquakes, you may pay higher premiums or even be forced to purchase additional insurance.
8. Past Losses: If you have had prior claims, including multiple small claims, your premiums are likely to be higher than somebody’s without the claims history.
9. Discounts: Most insurance companies offer various discounts to help decrease your premiums. These include, but are not limited to:
- Multi-Policy
- Non-Smoker
- Senior
- Alarm
- Dead Bolt
- Automatic Sprinkler
- Smoke Detector
- New Home
If you are interested in receiving a Denver homeowners insurance quote cl,ick here to visit our online quoting tool. Or, if you would like, you are always welcome to contact our office directly.
