Frequently Asked Questions

Below are some of our frequently asked questions. If you have any other questions or concerns, please feel free to contact us.

  1. What factors affect home owners insurance
  2. Term Insurance vs. Mortgage Life Insurance?
What factors affect home owners insurance

Factors That Affect Homeowners Insurance Prices

Home Type

The type of the home being insured will directly impact the cost of the homeowners policy. The material used in construction, like brick or stone, as well as the size will also be considered in the home insurance price.

Home Age

The age of the home will be an important factor when determining the cost of a home insurance quote. Older homes may be more susceptible to problems with aging plumbing and electrical systems, which can be costly to repair. Age of the roof. Some home insurance companies will offer an age of construction discount, reducing the home insurance premium for homes built before a specified year. Newly purchased and newly renovated homes are also often eligible for home insurance discounts. The age of the homeowner will also play a role in the cost of the premium, with some homeowners insurance companies even offering a discount for relatively elderly policyholders.

Home Location

The location of the home is a fundamental factor in the cost of the home insurance policy. The probability of major perils like hurricanes, tornadoes, floods, mudslides, wildfires, and other natural disasters is often directly correlated with the geographic location of the home. Consequently, the state where the home is located will play a major role in the home insurance quote. Proximity to the local fire department and fire hydrants are also often considered in policy pricing.

Individual Credit and Insurance Scores

Home insurance companies will look at the credit score and the insurance score of the homeowner when determining the cost of the home insurance premium. A credit score is used by the financial industry to determine the creditworthiness of a borrower. The homeowner’s credit history, amounts owed, types of credit, and several other factors are used to determine this score. An insurance score is used by the insurance industry to determine the risk associated with a policyholder and is typically used for home and auto insurance policies. This score is based on specific credit score measurements, like payment history, length of credit history, balances on accounts, bankruptcies, and other related inputs.

Other Factors

Similar to most types of insurance, policyholders that frequently file claims will likely face higher rates. Risk factors like owning a swimming pool, an aggressive dog, or a trampoline will all play a role in home insurance quotes, and will likely result with increased rates. There are also several safety features that can help lower the cost of homeowners insurance. Some of these include installing smoke and fire detectors, a security system, or deadbolt locks. Those looking for a low homeowners insurance rate will also want to ensure all available discounts offered by the home insurance company are being utilized.

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Term Insurance vs. Mortgage Life Insurance?

Term life insurance vs. mortgage life insurance

Both term insurance and mortgage life insurance provide a means of paying off your mortgage. With either type of insurance, you pay regular premiums to keep the coverage in force.

But with mortgage life insurance, your mortgage lender is the beneficiary of the policy rather than beneficiaries you designate. If you pass away, your lender is paid the balance of your mortgage. Your mortgage will go away, but your survivors or loved ones won’t see any of the proceeds.

In addition, standard term insurance offers a level benefit and level premium for the term of the policy. With mortgage life insurance, the premiums may remain the same, but the value of the policy decreases over time as the balance of your mortgage declines.

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