Home insurance risks
11 Feb 2009
Here are a couple of factors that affect your home insurance premiums:
1. Location – The rule of thumb is the higher the risk that your house or home may get broken into or damaged by natural disasters because of the location, the higher your premiums will be. City properties also tend to have higher premiums compared to houses in the suburbs.
2. Cost of repairs and construction – your insurance company will also give you a higher premium if it costs a lot to repair, replace or construct any part of your house in the locality or community where you live. This also applies to the construction materials your home or house is made of. If it’s built with expensive materials, you premium will also rise.