How is the cost of insurance determined?

mobsli2One of the major concerns that many people have in regards to buying homeowner’s or renter’s insurance is how much it will cost them to get the coverage they need. There are some situations in which a homeowner may need to buy extra coverage because they have high-value items. There are a number of factors that are taken into consideration by the insurance company when determining how much your monthly premium will be.

Some of the primary factors that determine the cost of insurance for both homeowners and tenants can include the age of the building, the building’s location, the materials used to build the structure, and the person’s credit score. One example of a factor that may impact the price of the insurance premiums are that if the building has a wood frame, it will be more costly to insure the building because wood frames are more susceptible to catching fire and have a higher potential for destruction.

It is also important to consider that you may be eligible for certain discounts on your insurance premiums if you take safety precautions in your home. These safety precautions can include the installation of smoke alarms, fire extinguishers, alarm systems, storm shutters, and more. If your insurance company is denying you certain discounts or is charging you higher premiums than they should, you should be sure not to pay more than they should. If you have questions about insurance policies in New York State, you may want to consult with an experienced insurance law attorney who can provide you with assistance.

The Law Office of Craig A. Blumberg is an experienced New York City insurance law firm. If you require quality assistance after having suffered property loss, please contact our firm to schedule a free initial consultation.