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Showing posts from May, 2011

Why Are My Insurance Rates Going Up? May 2011 Newsletter

A question I've been asked a lot lately is why are their home insurance rates going up? Home insurance rates are based on several factors. The factors that affect your rates directly are: Location of your home Cost to rebuild in your area Materials used House features Dollar amount of coverage Your location is usually the first place companies will use to determine the cost of your insurance premiums. If you live in an area where there has been a lot of claims, then your premiums will be higher compared to a similar home two blocks away from you if there has been no claims in that neighborhood. If you live in an are where the cost to rebuild is higher like on the islands with limited access or materials has to be shipped by ferry. Then the cost to rebuild is higher than one in the city. If your home uses high end materials like hardwood floors, solid oak wood cabinets, etc. Then naturally, the cost of materials to rebuild your home is more expensive than those which use