When you apply for homeowners insurance, your agent will be asked for a great deal of information. The insurance company will ask you about your current occupation and employment history, marital status, previous addresses, date of birth and Social Security number. They will also ask for information about the house itself including the age of the roof, age of the furnace, if the house has fuses or circuit breakers, and the type of plumbing (copper, PVC, galvanized, etc.). Many considerations will be made to see if you are a “good risk” for the company. To make this assessment, the insurer will check your criminal, credit, and insurance history including your “loss history” or the amount of home insurance claims you’ve made in the past.
After the company accepts you as a client, you will have the opportunity to sit down with an agent who will help you decide what type of homeowner’s policy you want, how much of a deductible you want and how you will pay for the coverage. Your agent or insurance company will determine how much it would cost to replace your home and many of the items inside. Special consideration and coverage may be required to cover expensive property such as jewelry or computer equipment.
Analyzing your home
An insurance company uses many factors to determine the premiums for a homeowner policy. Below is a list of a few of the aspects an insurance agent will look at in determining premiums for your home.
- How old is your home?
- What materials were used to build your home?
- In what kind of area is your home located?
- What is the square footage of your home?
- How many rooms are in your home?
- How do you heat your home?
- How many people live in your home?
- How close is your home to the nearest fire station and fire hydrant?
- What is the overall condition of your home?