Calculating your home insurance payments can be tricky because of all the different factors your insurance company needs to consider. We’ve listed several of these factors below, but this isn’t an all-inclusive list. The way each insurance company weighs risks is different and the formulas they use are closely-guarded secrets.
Our property insurance calculator for B.C. will evaluate all these factors — and more — to figure out how much money you may be able to save on your home insurance payments. Once you’ve entered all your information, you’ll be shown the most competitive rates from home insurance providers serving your area. Read more about the factors below.
Location: Where you live can also have an impact on your home insurance rates. For instance, if your neighbourhood has a high rate of crime or theft as opposed to a safer neighbourhood, this may impact your rates. In addition, if you live in a neighbourhood with higher home prices, this may impact the replacement cost of your home, which may in turn affect your rate. To help you navigate these discrepancies, our home insurance calculator for B.C. residents will show you rates from lenders serving your area.
Fire hydrant/station proximity: The safety of your home is a primary concern of your insurance company when considering your rate. Just the same way installing a fire alarm and sprinklers might lower your rate, so will living in close proximity to a fire station or hydrant.
The age and condition of your home: How old and well-maintained your home is will also factor into your rates, as older homes are more susceptible to damage. For instance, older pipes can leak or an older roof can deteriorate. It’s important for homeowners to remember that maintaining their home is a condition of their coverage. If the damage is found to have been caused by neglect the repair costs won’t be covered by your policy.
Whether you work from home or rent out your home: If you use your home for something other than your primary residence, this may also have some bearing on your home insurance rates. Some examples of this include if you work from home, operate a home business or rent out your home. There may be additional items related to your work or business that need to be insured that won’t be covered under your home insurance policy.
How many claims you’ve made in the past: It’s important to be smart about making home insurance claims. Making frivolous claims can increase your premiums, which is why you should ensure that your rates won’t go up by more than you’ll receive if you do make a home insurance claim.
Your age: As you get older, it may become more difficult to maintain your home. If this results in accidents inside or on the property, your home insurance premiums may increase.
Your home’s heating system: Generally, a home with an oil heating system has a higher risk profile than those with a gas furnace or electric heating system. This is due to the change of a leaky oil tank with the former. Furthermore, other elements such as a wood stove could increase the risk of a fire or carbon monoxide poisoning. As a result, if your home has either of these, you may need to pay higher premiums.
Other things that can influence your home insurance rates might include:
- Renovations or home improvements are likely to increase the value of your home.
- Pets that are considered more high risk (exotic animals and some dogs) may result in an increase in home insurance premiums.
- The size of your deductible.