Condo Insurance Rates Affected by Many Factors

Chicago (InsuranceAgents.com) – Knowing how condo insurance rates are calculated can save you significant money each year. There are many common reasons why rates go up that most condo owners are unfamiliar with. The more you know, the more you will save.

A recent InsuranceAgents.com article suggests that condo insurance rates will vary quite a bit depending on whether or not an individual is considered high or low risk. One of the first things the company will examine to see which risk level you are is your credit.

According to the article, “Oftentimes, condo insurance agents will look up your credit report and score before offering you a condo insurance rate quote. This is to determine whether or not you are a responsible or otherwise high-risk potential client. A strong credit report and score will reflect a person who is responsible, who pays their bills and loans on time, consistently, and in full. This will allow them to offer you lower condo insurance rates, ones that fit into your budget and save you money.”

Location is the second factor they will look at. Your proximity to fire hydrants and fire stations can lower or raise your condo insurance rates. The article continues, “The location of your unit is very important; if a fire were to erupt in your condo, having help nearby would minimize the damage done to your property. This is seen as a lower financial risk to insurers, who will be more forthcoming in offering you lower condo insurance rates.” Also, the proximity of lakes, creeks, and rovers can affect your rates as well due to the flood risk.

The condo insurance company may also look at things such as safety features you have installed like dead-bolt locks, alarm systems, motion sensing lights, and smoke/CO2 detectors to see if they can offer you a discount. Your neighborhood crime rate and the actual materials your building is made out of will affect your condo insurance rates as well.

For more information, visit InsuranceAgents.com.

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