Home insurance is purchased in an effort to cover your home and personal belongings in the event of a disaster. However, it can also provide protection for you in certain instances. Due to the fact that your homeowner's insurance offers so much protection, when you apply for coverage, you will be asked some personal information. The answers to these questions can have a direct impact on your eligibility as well as your premium rate. Keep reading to learn some of the information that you may be asked when you apply, aside from information about your actual home.
Your Date of Birth
When applying for home insurance, you may be surprised to find that the insurance company is interested in your birthday. Not only does your date of birth let them know that you are old enough to seek coverage on a home, but it also lets them know if you are eligible for certain age-related discounts. For instance, if you are 55 years or older, you may be able to get a maturity discount.
Depending on the state in which you live, your credit score may be required during the application process. The insurance company requires your credit score because they believe that if you handle your finances well that you are less of a risk when it comes to filing claims. In the end, you may have a lower premium if you have a higher credit score.
If you have fraud or arson in your background, there is a good chance that you will not be approved for homeowner's insurance coverage. With this in your background, the insurance company deems you a high risk for committing fraud down the road.
The insurance company will also want to know where you are living. In other words, they need to know where you are needing home insurance. If you are seeking insurance coverage for your primary home that you live in year-round, then you can expect lower rates than if you were seeking coverage for a secondary home or vacation home that is less frequently used. This is because a primary home is not as likely to be vandalized or broken into. Vacation and secondary homes tend to have more severe insurance claims, which can lead to higher claim payouts.
To learn more about what will be needed for you when you apply for coverage, contact a homeowner's insurance company in your area, like Illinois Insurance Center Inc.