Major factors that determine home insurance rates in Illinois

Homeowners insurance rates are not the same for everyone. Two homes located right next to each other could have different insurance rates. The varying rates are due to the different factors that are used to determine what a homeowner pays for their insurance policy.

While there are dozens of different factors that will increase or decrease insurance rates for homeowners, there are several major factors that are taken into consideration. The following are some major factors insurance companies use to determine homeowners insurance rates.

The Location of the Home

Where the home is located can play a huge role in the rates a homeowner will receive for a homeowners insurance policy. Insurance companies may look into the following statistics to determine rates:

·         Current crime rate

·         Susceptibility to natural disasters – forest fires, tornados, and floods

·         Proximity to a fire station

The Age and Condition of the Home

Many insurance companies will consider a newer home to be safer and less of a risk to insure than an older home. This is why many insurance companies will ask homeowners how old their home is and/or various questions regarding the condition of the home.

Some of the factors that may be taken into consideration include:

·         Age of the plumbing system

·         Age of the roof

·         Materials used to build the home – fire resistant, bricks, or stone

·         Condition of the HVAC system

Possible Risk Factors Located In or Around the Home

Homes with certain features, such as pools or guest homes, often require more insurance coverage than homes without these features. Insurance companies will often inquire about what types of features are located in or around a home to determine their risk fact and create an insurance quote.

Some possible items that can increase insurance rates include:

·         Swimming pools – indoor and out

·         Additional guest homes

·         Certain pets – aggressive dogs

·         Trampolines

These are just some of the many factors that can influence homeowners insurance rates in Illinois. Contact you Bob Korvas agent to discuss your current housing situation and to find/compare insurance quotes on various homeowners insurance policies.