Whenever purchasing a land for own house construction, the owner must checks for factors like population around, the land arte, transportation facilities and security. Like for a home, when ever any home insurance policy is to be issued, it also consider some factors to decide whether to issue policy or not. If issued at what rate, home insurance is to be issued. Depending on the locality rates will be high and low.
The Main Factors
In South Carolina State there are several insurance companies provide variety of rates for South Carolina home insurance. The factors that affects are as follows:
- House age: If the house is too old, it will not get the standard insurance benefits. The coverage value is very limited. But, Where in the case of newly constructed house, there are chances for discounts of home insurance. It is difficult to insure old homes, because of the old plumbing, poor wiring and damaged roofs which cause risk factors. So, insurance companies do not show interest to issuing policies to old homes. If the house is renovated they provide home insurance.
- Type of Construction: Usually two construction types, either wood or bricks are preferred to construct a home. Wood houses cost most to insure than bricks. Wood houses are easily affected by wind, Fire and pests. So, it is not easy to insure frame houses. Brick houses are more rigid when compared to wood homes.
- Discounts: If the other insurances like auto and life insurance policies are also purchased in the same company they will provide low premium rates. Depending on the security of the house and safety measurements in the house also discounts will be offered.
- Amount of insurance coverage: The amount of coverage for home, contents, other property and personal liabilities will affect the price to pay.
- Home location: It plays a vital role in cost of South Carolina home insurance. Insurance companies will check for the locality details such as, the weather conditions around the vicinity, any property damages that occurred previously around the area, Fire department facilities, previous claims in that locality, Disaster management, cost of the land and popularity in the locality. If the results are in favor of insurance company then the discounts and rates to be charged are decided.
- Natural calamities: Weather related claims are frequent in any area. If that area has proper safety measurements, there is less risk of damage. If the area is prone to natural calamities like floods, hurricanes and freezing then the owner has to pay high amounts for insurance coverage.