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Your Regina Home Insurance is calculated by a combination of many factors. These factors can be condensed into three categories: location, risk, and scope of coverage. 

Location:
Where you home is located plays a big part in the cost of home insurance. Insurers look at crime rates, number of claims from the neighborhood, and proximity to police and fire services. It isn't how upscale or fancy the houses are. Modest homes on a simple street may have lower intrinsic rates than a gentrified neighborhood because there are fewer burglaries and less vandalism. The insurer looks at the history of the area in determining the affect of location on the cost of insurance. 

Risk:

Risk goes to the likelihood of a loss and what the magnitude of the loss might be. Risk factors include age of the home. New homes usually receive a lower rate because insurers know that current building codes were followed and there are fewer unknowns in the construction. Building materials may also play into the calculation. Certain building materials are less likely to burn or sustain water damage. 

The insurer also looks at the home's infrastructure. For example, natural gas versus electric versus oil heating systems is a big consideration. Wood stoves and fireplaces will increase the risk and, therefore, the cost of coverage. The age and type of the home's wiring and plumbing is also important. The age and composition of the roof are critical factors in the cost of insurance. 

Home location also comes into play with risk factors. Is the home near water? Is it on a recognized flood plain? Is there a history of loss from hurricanes or earthquakes? All of these questions must be considered when calculating home insurance rates. 

Home owners can mitigate some risks and may qualify for a discount on their home insurance. Mitigations may include fire and burglar alarms or incorporating fire resistant materials into construction. Other mitigating actions might include tree removal or closing off fireplaces. Only an experienced agent can advise a homeowner on the value of mitigating actions. 

Scope of Coverage:

The final factor in determining the cost of home insurance is the scope of coverage. Owners may opt for a fixed amount of coverage or full replacement costs.  The second choice offers more protection, but there is a trade-off in higher premiums. Full replacement costs of a luxury home are going to be higher than a basic policy on a modest bungalow.

Another key factor is the amount of the deductible. The higher the deductible, the more the home owner shares the financial risk with the insurer, and, as a result, the lower the premium.

Calculating a home insurance premium that is fair to both parties requires knowledge, experience, and skill. Call a Heritage Insurance agent at  800-667-7640 for an appointment to review your existing coverage or to establish new coverage for your home. 

Posted 9:16 PM  View Comments

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