For more information, read Factors That Affect Condo Insurance Rates. Visit InsuranceAgents.com for expert articles and Condo Insurance Quotes from up to five local insurance agents.
What Makes Condo Insurance Rates Go Up?
Condo insurance rates are increasing across the country along with just about every other type of insurance. This means now is the best time to lock in a low rate and save yourself hundreds of dollars a year potentially. Understanding how condo insurance rates are calculated will help you find the lowest ones possible.
The Insurance Company Considers Many Factors
Location – The insurance company will factor in many things about where you condo is located in the condo insurance rate they offer you. Things such as distance to the nearest fire hydrant and fire station, proximity of the nearest river/creek/lake, and how close you are to other natural features like forest, desert, and mountains. The more potential risks there are to your unit from fire, flooding, and animals, the higher your rate will go. Your Credit – One of the first pieces of information pulled when you apply for a condo insurance quote is your credit score. The insurance company wants to know how good of a history you have with paying your bills on time and fulfilling your debt obligations. The general rule is that the lower your credit score, the higher your condo insurance rates will be. If your credit is bad, they might even request you make a deposit up front before they will issue you coverage. Crime Rates – Along with the geographic location of your unit, the insurance company also will factor in the socio-economic characteristics of your neighborhood. They will examine income levels, crime rates, and many other factors that will affect your condo insurance rates. Basically, the less safe your neighborhood, expect to pay significantly more. Installing an alarm system, dead-bolt locks, shatterproof glass, smoke and CO2 detectors, and motion sensing lights can help offset these costs because most condo insurance companies offer discounts for installing them. Are You’re a Smoker? – If you smoke you will pay more for condo insurance rates since smokers pose a significantly higher fire risk than non smokers. If you currently smoke, but you are quitting, let your condo insurance company know and they may discount your rate.
Shopping Around
One of the best ways to find low condo insurance rates is to shop around and compare multipl;e companies to each other. Using websites like InsuranceAgents.com you can compare up to five quotes at a time from competing companies and find the lowest rate for you.