Home owners insurance coverage is determined by a number of factors. When applying for a policy you will more than likely be asked for the names and ages of inhabitants as well as the number of pets you have. Living beings effectively make up your household and may make a difference to the amount of claims you are likely to make and thus the home insurance replacement costs associated with it. The type of beings that inhabit your home will affect your premiums in very different ways and can make a favourable or unfavourable difference as a result.
SENIORS – If your household is mainly or completely composed of seniors then your home owners insurance coverage premium is likely to be low. Seniors, as long as they have a good credit rating, are renowned for making fewer claims on their home insurance and are generally home in the day. As a result, home insurance replacement costs are low and thus the premiums will mirror that. They are also less likely to leave their home unoccupied for long periods of time, which will also be taken into account.
STUDENTS – Students are usually placed in the high home insurance replacement cost bracket. They statistically make more claims than most other groups as a result of damaged property. Therefore, if students reside in your household then your premiums will be higher to ensure complete home owners insurance coverage. This also applies if your children are students who go away to school if they are still covered by your home insurance policy.
CHILDREN – Home insurance companies do not always take small children into account when they are determining your home owners insurance coverage and thus may not actually affect your premiums. However, some insurance companies will ask whether you have any dependents. If they do ask this then the home insurance replacement cost will be higher, which will mean that your premiums will rise accordingly. This does tend to even itself out when they hit their teenage years though as they are not considered as much of a risk. It doesn?t matter how careful you are, or the access that your children are given to expensive items, as this is not taken into account when calculating home owners insurance coverage.
PETS – If you own any pets, especially dogs or cats, then it may increase your home owners insurance coverage as home insurance replacement costs are likely to be higher as a result of more claims. However, if you do have pets but your home insurance policy excludes accidental damage inflicted by pets then it is unlikely to affect your premiums at all!
A home insurance company will ask various questions regarding your household. Despite knowing the above information may adversely affect your premiums, you must always be honest as lying could render your homeowners insurance coverage null and void. After all, it is better to have expensive home owners insurance coverage than no coverage at all!