Factors That Influence Tampa Homeowners Insurance

June 15, 2020

It is a misconception that the value of your home is the only determinant of the cost of home insurance. Several factors determine homeowners insurance Tampa Florida, which impacts the premium that you pay. Here are some of them! 

Factors that Influence Homeowners Insurance Tampa FL

  • Characteristics and features of your home: It includes the age of your home, type of structure, roof, wiring, garage, and so on. Remember, older homes cost more to insure.
  • Location and neighborhood: Insurance companies consider crime rate and claim history of a neighborhood in determining the premium of the homeowner insurance. A neighborhood with high claims history will see high insurance rates as they are considered to be a risky location.
  • Extreme weather: Catastrophic weather events are a part of Florida due to which the state has one of the highest insurance premiums in the United States. The state is prone to hurricanes, and this vulnerability drives the premium rates up.
  • Installation of protective devices: Smoke detectors, burglar alarm system, fire extinguishers, and deadbolt locks are among the few features that can lower your homeowners insurance Tampa. 
  • Population: Densely populated areas have high construction costs, and the homeowners insurance cost correlates with the replacement value. In addition, they also correlate with the area fire suppression capabilities. As densely populated areas need more capability, the rates there are higher.
  • High-risk areas: Homes that are located in high-risk areas such as near a forest, on a cliff, near a river, or areas prone to flood have high insurance premium rates compared to low-risk areas.
  • Personal factors:
    • Credit score: Your credit history is considered by insurance providers in determining homeowners insurance. It is used to predict the likelihood of a person filing a claim.
    • Personal belongings: Your homeowner insurance protects some of your personal possessions, with restriction. If you want coverage for your possessions, then you will end up paying more premiums.

Many other factors include your income, insurance factors such as deductibles, claims, and discounts that influence your homeowners insurance premium.  It is vital to review your Tampa homeowners insurance coverage regularly to be sure that you are at pace with the cost of repair, replacement, or rebuilding if the need arises, and plan your insurance premium accordingly.