How much will home insurance cost me?
Well that depends on a wide host of factors, as every persons quote is tailored to their home and their circumstances. Insurance is never ‘one size fits all’ as different circumstances present differing risk sizes. For more on insurance ‘risk assessment’ please see our other articles.
Suffice to say the greater the risk, the more chance the insurer will have to make financial compensation, therefore the increased cost they will charge for coverage. The home insurance companies will generally put all the details into a computer to come up with an assessment. So, in short, it varies.
Ok then – what can affect my home contents insurance quote and premium?
Well now there’s a better question! Primarily it will be the level of cover you require. If Joe from next door has an old television, a nice leather settee and a nineteen seventies record player then he might not require a high level of cover – his items will not have a high monetary value. Contrast this to John next door who wants cover to encompass his collection of gold and platinum rolex watches then the level of cover needed will be much higher. When the home insurance coverage is higher, the customer is charged for this in increased premiums.
And what will affect my home insurance premiums?
This will depend on your location and type of housing and level of cover (amongst other factors). Location affects the premium because some are riskier than others. A house next to a river for example would be a greater risk of flooding than a residence high up on a hill -should there be a torrential downfall of rain the river could burst its’ banks and flood the house near it. The type of housing is very important – if made out of bricks and mortar it is ‘standard’, a solid build method which is durable and so will attract a smaller premium.
A wooden shack on the other hand, is another matter. Lastly the level of cover is a contributing factor, probably the main factor. Someone claiming on a two hundred thousand pound policy may have the whole amount paid out to them under home insurance cover. Another person may have fifty thousand pounds of cover and, if a successful claim is made, have fifty thousand paid to them – less expensive for the insurance company, therefore a less expensive premium (all other factors remaining the same).
Tags: home insurance cover, home insurance premiums, player, mortar, home insurance cost, hand, nice leather