Wondering how insurance companies set rates?
Property insurance products can vary from company to company. The premium you pay reflects the risk you pose. Higher risks pay higher premiums; likewise lower risks pay lower premiums. Your property insurance premium will depend on a number of factors, including:
- Location
- Do you live in a Metropolitan area? Southern Ontario? Northern Ontario? Northwestern Ontario?
- Where is the nearest fire hydrant? Fire hall? Is it full-time or volunteer?
- Your Property
- What type of property do you have? Detached dwelling, small apartment, high-rise apartment or townhouse? How many storeys?
- How old is the building? Have upgrades been made to the wiring, heating, plumbing and roof?
- What type of heating do you have?
- What is the claims history of the dwelling?
- How many families live in the dwelling?
- Do you have an alarm system?
- What is the replacement cost of the dwelling, personal property (contents)?
- Underwriting Criteria
- The rules and criteria applied to coverages, deductibles, discounts and services impact the pricing related to the individual risk insured.
- The Insurance Policy
- Would you like any additional coverages? Increased liability limit; rental income replacement; earthquake coverage; home-based business extension; burglary/vandalism (seasonal dwelling); Enriched Property Protector; sewer back-up coverage
- Do you qualify for any discounts?
- Which deductible you choose - $500 to $10,000