Believe it or not your zip code directly affects your insurance premium. Why? Because where you live determines the likelihood of a car accident or other reason for an auto claim and what that claim might cost. The higher the chance of a claim the more the insurance company needs to charge to accommodate for this future event.
For starters, urban residents typically pay higher rates than people who live in rural areas. This is because the chances of accident occurring in a densely urban population is much higher than a rural area.
Insurance companies then look closely at your zip code to determine risk. What they look at includes:
Weather: Insurance companies will take things like snow, hurricanes, and tornadoes into consideration. If you live in Florida or Oklahoma, for example, you may pay a higher premium than if you live in Arizona.
Crime: Is there a lot of crime in your zip code? If so, you could very well see higher insurance rates. Auto theft and vandalism are serious crimes that raise rates.
Local roads: How are the roads in your area? Are they full of pot holes or are they evenly paved? The road conditions in your zip code affects the likelihood of an accident. If roads are riddles with potholes, the chances of an accident increase and it is the job of the insurance company to know this.
At E.S.T.I.R. Inc. we understand how insurance works. Our experienced agents work with customers in the Newark, NJ area to get the most affordable auto insurance for the best coverage. To talk about a new auto insurance policy in Newark, NJ call E.S.T.I.R. Inc. today to get started.
Home insurance policies contain a lot of terms that the everyday person does not fully understand. Here are a few terms that you are likely to see on your home insurance policy and what these terms mean.
Actual Cash Value
Most home insurance policies state that they will replace the items you lost in a home fire, due to theft or other covered cause based on the actual cash value of the item. This means how much it will cost to replace the exact item that is gone or damaged beyond repair. So, if you bought a television set for $500 two years ago, you won’t get $500 for the t.v. You will get maybe $150 to $200, which is about what it would cost to buy a two year old television.
Loss of Use
Another term you will likely see on your home insurance policy is loss of use. This means that the insurance comply will pay you a loss of use fee, including the loss of use of your housing, kitchen or other items that you may have to pay to use if something happens to your home. This may be the price of a hotel and eating out while your home is being repaired after a fire.
Rider or Endorsement
Seeing the words rider or endorsement means that there is an exception to your policy. A rider or exception mean the same thing and the terms are used interchangeably. Most of the time, an endorsement adds something to your policy. For example, your policy may state that up to $2,000 worth of jewelry is covered in the event of a break in. An endorsement can be added to cover an expensive piece of jewelry, such as a $5,000 wedding ring.
There are many terms that are used in home insurance policies. If you do not understand what these terms mean, you may not fully understand your policy. At E.S.T.I.R. Inc. we want to ensure people understand the policies they are getting. If you need home insurance in the greater Newark NJ area, we invite you to sit down with us to go over your home insurance needs. We will help to determine the best policy for you and explain any terms or questions you may have about the policy. Call us now to get started.