There are many factors that influence the cost of your home or property insurance. We’ve explained the factors that impact your rate and ways to ensure you have proper coverage.
Understanding our role within the insurance industry
Youngs Insurance is an Insurance Brokerage that employs provincially licenced insurance brokers who sell insurance. We work alongside Insurance Companies to provide you with purchase options. Insurance brokers work for you, which means they offer unbiased coverage recommendations. Basically, we act as a ‘middleman’ between you and your insurance provider. As an Insurance Brokerage, we do not have control over the cost of insurance prices - the rates and rules are defined by Insurance Companies.
Your insurance broker has no bearing on your home insurance rate. So, what goes into determining your particular rate? There is a long list of factors, but we have shared the most important below.
Six Important Home Insurance Rate Factors
Living in a neighborhood where home insurance claims are common will increase your premiums. The law of probability determines you’ll be more likely to submit a claim living in that particular area.
#2 Replacement Cost
This refers to the cost to rebuild your home should a disaster strike. For example, if your home is built with the best finishes and materials, then your replacement cost will be higher than if you used basic materials. Typically, the higher the replacement cost, the higher your rate.
#3 Plumbing & Electrical
Without getting into specifics, a home with older plumbing or outdated electrical can increase your risk of flood or fire. These two factors will contribute to a higher home insurance rate.
Having tenants live in a section of your home will increase your insurance as your home is no longer a single-family home, but a multi-family home.
#5 Home Business
Property insurance is designed to protect exactly that - your home. If you run a business from your home, it is important to add additional insurance to protect yourself and the business.
#6 Swimming Pool
It’s important to alert your insurance broker if you add a pool to your property. A pool increases the risk of liability, and may increase your rate; not notifying your provider may leave you without coverage should something happen.