Idaho Homeowners Insurance Guide

According to statistics from the Insurance Information Institute, Idaho is the 49th cheapest state in the U.S. for homeowners insurance. Idaho has very few natural disasters, which means less risk for home insurers and lower premiums for homeowners. If you’re looking for a house insurance policy in Idaho, read on for important information on how your rates are determined, how to choose your deductible, and what your rights are as a policyholder.

What Influences Premiums

Here are the factors that will determine your Idaho homeowners insurance rates:

• Construction material: Brick homes will cost less to insure than frame homes.
• House’s age: Newer homes are typically cheaper to insure because they qualify for discounts with most insurers. If your home is older, certain insurers may refuse to cover it or only offer limited coverage.
• Fire protection: How close your home is to a fire hydrant and the quality of the local fire department will influence your house insurance premiums.
• Deductible levels: Higher deductibles will lower your premiums.
• Discounts: Multiple-policy discounts offer substantial savings to homeowners who purchase several policies from the same insurer. For instance, you may be able to purchase home, auto, and life insurance from the same company for maximum savings.

Choosing a Deductible

Deductibles refer to the homeowner’s financial responsibility for claims against home and personal property coverage. For instance, if you filed a claim for a stolen TV worth $1,000 and your policy had a $500 deductible, you would receive a $500 benefit from your insurer. As mentioned previously, selecting higher deductibles will keep your Idaho home insurance premiums as low as possible. On the other hand, high deductibles will mean considerable out-of-pocket expenses if you ever have to file a claim. Though you can save on premiums with higher deductibles, setting them too high will only backfire financially. You should choose a deductible that is high enough to keep your premiums reasonable but not so high that you couldn’t afford to pay it if necessary.

Idaho Policyholder Rights

Home insurers may cancel your policy before its expiration date, but only for specific reasons, such as nonpayment of the premium. If your policy is canceled, Idaho law requires that the insurer send the policyholder a cancellation notice at least 30 days in advance of the cancellation date. On the other hand, if your policy is canceled because of nonpayment, the insurer is only required to send you a notice ten days in advance of coverage cancellation.