Factors that influence premiums:
The following are some factors insurance companies take into account when determining your property premium:
- Location: areas that have a higher risk of crime or weather related losses would have a higher premium than those areas that have a lower risk of such losses. Also homes closer to a fire station/fire hydrant will have lower premium than those that are further away.
- Age of home/home’s condition: a newer home or a home that has been fully updated and regularly maintained would generally have a lower premium, as the plumbing, electrical, or roof would have fewer issues resulting in less claims.
- Loss prevention: devices which will help mitigate loss (i.e. monitored burglar alarm) will result in lower premiums as the likelihood of a claim occurring, and any resulting damages, will be reduced.
- Number of claims you have made: there are greater discounts given on premiums the longer you remain claims-free.
- Type of heating: homes that use a wood-burning stove as a secondary source of heating are at higher risk of fires, which results in higher premium.