How is the cost of homeowner’s insurance determined in New York?
When insurance companies are determining rates for a homeowner’s insurance policy, they will take a number of different factors into consideration. There is no one blanket rate that is given to all homeowners. These rates vary between companies, between homeowners, and between properties. Some of the factors that insurance companies will take into consideration when determining insurance premiums include the following:
- The location of the building
- When the building was constructed
- Whether the building is residential or commercial
- The proximity of the fire department and fire hydrants to the building
- The availability of premium discounts
- The amount of insurance company
- The building’s susceptibility to flooding (i.e. is it in a flood zone?)
- The materials that the building is made of (i.e. brick is more fire resistant than wood is)
Not only will the insurance company consider the previously mentioned factors, they will also take into consideration the consumer’s credit score. If an insurance company sees that the consumer has a history of missing payments, they may not decide to issue a policy to that homeowner. Sometimes, low credit scores lead to higher insurance premiums. That being said, a consumer may request that the insurance company reviews the credit report every three years to determine if they are eligible for a lower premium.
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.