Understanding the Risk:Rating Factors (HER-PA)

• How Insurance Premiums Are Set. • Rate making (aka insurance pricing, also spelled ratemaking), is the determination of what rates, or premiums, to charge for insurance. • A rate is the price per unit

of insurance for each exposure unit, which is a unit of liability or property with similar characteristics.

What is Rate Making

Age• Is this a heritage home?• Typically Carriers will require a referral for buildings

constructed prior to 1966.

LocationInsurers keep statistics on claims across the province, and every theft, fire and storm is recorded and calculated into rates. So if you live in a neighborhood that’s prone to break-ins or sewer backups, your rate will reflect that.

Size and UseSize If you live in a three-story house, chances are you have more stuff than someone who lives in a small townhouse – which would mean more to rebuild, replace or repair in the event of, say, a fire or flood.

Usage If you run a home-based business, you’ll pay more for insurance, to cover office equipment and inventory. Home insurance policies come with a personal liability component, too, so insurance companies look out for property usages that might present risks, like trampolines and pools.

Heating• Heating/ Last Updated:

• Oil (Quest/Photo):• Wood Stove (Quest/Photo):• Any Auxiliary heating?• Non- Standard heat allowed if professionally installed

Woo Hoo!!!I’m getting it!

I’m also getting really hot… Time to leave, and talk heating …

Wood Stove

Oil HeatingCentral Furnace

Boiler H20

Electric Boiler

Electrical• Electrical/ Last Updated• Copper, Aluminum, Knob and Tube /

Percentage• Amps: 100 , 200 (60 Amp ok w/ HYDRO

CERTIFICATE)• Breaker or Fuse box

I don’t really feel like I know enough about electrical to

ask the right questions.

Can you guys give me some

suggestions?

I’m a little lost withPlumbing too.

Want to share some pearls of wisdom?

Plumbing• Plumbing/ Last updated• Copper / Percentage• PVC / Percentage• Galvanized piping/ Percentage • PEX/ Percentage

PEX CopperPVC/ABS

Galvanized

Sump Pump• A sump pump is a small pump

installed in the lowest part of a basement or crawlspace. Its job is to help keep the area under the building dry and to prevent it from flood ing. Usually, sump pumps are installed in specially constructed sump pits. Water flows into the sump pit through drains or by natural water migration through the soil. The sump pump's job is to pump the water out of the pit and away from the building so the basement or crawlspace stays dry.

Backwater ValveA backwater valve is a one way flow control valve installed in a drainage system, that under normal conditions allows the waste water to drain out of the system but if a reversal of flow should occur, the valve will be forced closed and protect the interior of the building from sewage backup. Every year thousands of homes are flooded with raw sewage and storm water causing millions in damages that could have been avoided with properly installed backwater valves.

Better make sure that water heater stays up to

date!I HATE COLD SHOWERS

Water Heater

This is making a lot more sense…

But I would still like more information on

roofing …

Hey… you’re a licensed contractor;

Right?

ROOF• ROOF/ Last updated• Asphalt shingle• Metal• Wood shake• Clay

YES! Great!

Asphalt

Steel

Wood Shake

Tar

Clay

ClaimsClaims, coverage and deductible The higher your deductible – the amount you agree to pay upfront in the event of a claim – the lower your insurance rate. A higher deductible also tends to reduce the number of small claims you make, keeping your claim history clear, which in turn contributes to keeping rates down.

DiscountsSpecial discounts There are a few other ways you may be able to reduce your home insurance premiums. Installing monitored systems that detect fire and/or break-ins can usually net discounts. These systems can either be centrally monitored or locally alarmed. Some insurance companies also offer claim-free, mortgage-free or age-50-plus discounts.

Multi LineSecurity

Sump Pump Backwater valve

Updates

Unfinished BasementCredit

Mortgage Free

Non- Smoker