How insurance premiums are determined will vary from insurance company to insurance company, however, most companies will apply the following factors when deciding what to charge you for your home insurance.
Locality - Insurance companies will weigh how safe your neighborhood is, how near your house is to a fire station, and the chance for "act of God" claims.
Building materials - Is your home made of wood, stucco siding, brick, or stone?
How old is your house? - newly constructed houses can usually receive a lower rate
Coverage amount - the total coverage you have on your house, your house's belongings, and the liability cap are all figured in the amount of your policy.
Assessment of loss - what your homeowner's policy will cover in the occurrence of a claim, if it will pay the actual cash value or the cost to replace missing or destroyed contents.
Deductible - what is the dollar amount you are going to pay before your insurance takes over. If you have a homeowner's loan, the max limit of your deductible will typically be greater than the amount set by your lender.
Call us at 877-430-0092 for a comprehensive Denver homeowners insurance quote.
You should have an amount of insurance that is sufficient to rebuild your home in the event it is totally destroyed by a fire, tornado, hurricane or other insured catastrophe. The amount of insurance should cover the cost of rebuilding your home at current construction costs, not including the value of the land. Don’t think about the price you paid for your home or the appraised value. The cost of rebuilding could be more or less than the price you paid or could sell it for today.