Your home’s replacement cost is one of the driving forces behind your home insurance premium and the amount of coverage you receive. But the value of your home and its contents aren’t the only – or the most significant – factors that dictate how much you’ll pay every year.

Home insurance premiums vary greatly by region and company. Every home insurance company uses its own specific criteria to determine rates. So what’s the driving force behind rates?

A risky policy could place financial strain on a home insurance company if multiple claims are filed and paid out. To determine risk, home insurance companies give significant consideration to past home insurance claims submitted by the homeowner, claims related to that property and the homeowner’s credit score.

The main drivers for determining windstorm insurance rates are proprietary hurricane models utilized by both private companies and by Citizens. These models use computer-assisted calculations to estimate the losses that could be sustained due to a hurricane.

While insurers are there to pay claims, they’re also in business to make money. Insuring a home that has had multiple claims in the past 3 to 7 years, even if filed by a previous owner, can bump your home insurance premium into a higher pricing tier or even make your home ineligible for coverage.

Factors that impact Monroe County windstorm rates include replacement cost, accessibility to resources and labor costs. Pricing and eligibility for windstorm insurance can also vary depending on an insurer’s appetite for certain building construction, roof type, and condition or age of the home.

Pin It on Pinterest

Share This