Saturday, January 05, 2008

Calculating Flood Zone Insurance Premiums

By John Paige

Insurance companies differ in their rates and quotes but several factors affect the cost of the premiums on your UK flood zone insurance. First of all, you need to specify the level of cover you require. This amount will make quite a large difference to the size of your premiums. You will be asked what kind of cover you require as well as the value of cover. This means that if you want to cover more areas for your insurance policy, expect the cost of your premium to be higher, too.

It is mandatory to fill a quotation form with your personal details whenever you buy an insurance policy. You should fill in accurate details and many of the answers that you give will decide the calculation of your premiums. This particular thing is depended on the type of insurance cover that you are enforcing for. By any chance if you avoid this questionnaire, you might face trouble later when your claims for the insurance policy are stopped or when the insurance policy is nullified.

For rate calculation purposes, you will be asked to provide a number of details about the structure of the home itself. Premiums are lower for homes built of stone, concrete, or brick, as well as homes with a roof made of slate, tile, or concrete. The insurance provider will also want to conduct an inspection of your plumbing, electric wiring, heating system, and other internal workings.

There will also be inquiry into when your house was constructed and how many people reside within the home. Whether the home is owned or rented is another factor, as is the number of bedrooms inside and whether the house has fallen victim to previous floods or other natural disasters and events.

Another major factor for calculating the premium is the location of your house. The proximity of natural calamities should be considered for insurance policies. If there is an increased risk to the insurer due to the proximity to such places will cause an increase in your premium costs.

Security in the area is another factor in calculating your premium. The insurance providers will also take the crime rate of your area into consideration. They will want to know about the kind of locks you use, if you have burglar alarms, smoke alarms, and other concerns. The distance of your house to the emergency services like fire stations and police stations will also decrease/increase the cost of your flood insurance premiums.

Moreover an insurance agent will ask you to fill personal details like occupation and the income earned. This is to assess the capability of the person to repay the premium in the future. The age of the person is also a factor; if your age is above 50 years then you are liable to get some discounts also.

There are measures you can take to lower your flood zone insurance costs. Whatever conditions your house is in, tell your insurance provider if there are ways you can lower the insurance risk because your flood insurance premium would go lower, too.

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