Key Factors That Impact Habitational Insurance

Owning a commercial rental property means facing several risks. Theft, vandalism, extreme weather events, and other emergencies lead to costly repairs and item replacements. Fortunately, commercial habitational insurance helps business owners avoid these financial catastrophes. Having an adequate habitational insurance policy gives you the protection you need to cope with the unexpected. 

You have several options when selecting Ohio habitational insurance, and you must understand the affordability of those choices. Numerous factors influence the cost and availability of these policies. Understanding these influences allows policy purchasers to make the best decisions for their businesses.

Factors That Affect the Cost of Habitational Insurance

Insurance premiums and deductibles vary widely from one provider to another and one policy to another. Insurance companies consider the following factors when offering insurance and setting rates.

1. Property Type

Some properties are more difficult to insure than others, especially those facing frequent weather events or housing high-risk populations. Older buildings and structures in flood zones carry additional risks, as well. Some insurance providers cover such properties with specialized policies that may cost more. 

2. Current Market Conditions

Insurance carriers adjust capacity and deductibles based on insurance market trends. Years of significant losses spur them to reduce capacity, increase policy deductibles, and limit product offerings. Expect to pay more for insurance in a difficult market.

3. Deductible Structures

Does the policy cover all risks with one deductible, or does it split deductibles for specific risks? Some insurers hold certain events, like thefts and water damage, separately from other events on the policy. Make sure you understand these provisions and your risk of certain damages when determining the affordability of these policies.

4. Crime Statistics

Much like with your home and auto insurance policies, underwriters consider crime statistics when determining habitational insurance coverage. As a result, businesses in high-crime areas may pay higher premiums or may not be covered at all.

5. Property Values

Underwriters are more diligent when determining property values due to significant losses in recent years. Consequently, insurance carriers may not offer you as much coverage as you expected based on previous policies. Consider this when determining whether the coverage extended justifies the premiums and deductibles you pay. 

6. Building Conditions

Insurance carriers face increasing risks from habitability claims that require them to pay for unsafe living conditions whether or not they result in bodily injury or property loss. These costs transfer to policyholders. Keeping your property maintained may be costly but could save you money on insurance in the long run. 

Making the Right Choice

Work with an Ohio habitational insurance provider that understands the many factors affecting policy costs. Their support and expertise will help you effectively balance your insurance needs with your financial requirements.

About Haughn & Associates 

Founded by Michael Haughn in 1986, Haughn & Associates is a full-service, family-owned, independent insurance agency based out of Dublin, Ohio. H&A strives to provide the best possible price and unique insurance solutions across a myriad of industries, including construction, IT, Habitation & Commercial Property, Agriculture, and Engineering. Devoted to providing the best of business insurance, life and disability insurance, personal insurance, employee benefits, and bonds, H&A is proof that success lies in long-standing client relations and satisfaction. To learn more about how H&A can be of service to you, contact us at (877) 802-2278.