Homeowner’s insurance is a policy that protects several aspects of your home. It covers sudden and accidental events that may occur to the dwelling, contents and accidents that happen at the home or at the hands of the homeowner on the policy.
Just like with auto insurance, the premiums are based on several factors including the location of the home, the age of the structure, past claims from the homeowner, updates, credit reports and insurance ratings. The premium is also directly related to the estimated replacement cost of the home.
A homeowners deductibles can also have an effect on the premium amount. If you carry a higher deductible, your policy is not going to be high, because you, the homeowner are taking on more of the liability personally. There are also different types of deductibles, all peril deductibles usually include situations such as a fire, lightening, vandalism, pipes bursting, etc. Here on the Georgia coast we also have a “Tropical Cyclone Deductible”, basically hurricanes, and that deductible is based on a percentage amount of the dwelling amount.