Insurance is designed to bring a building and possessions back to the same condition they were in before a loss occurred. An owner will be paying for insurance for as long as they occupy the structure and so should factor the cost of insurance into the buying decision.
The most critical factors affecting insurance premiums are:
- The amount of dwelling coverage chosen
- The amount of possession coverage chosen
- Coverage for additional structures
- Coverage for loss of use
- Coverage for medical expenses if injured
- The deductible
- Liability coverage
- How old is the structure?
- Is there a security system
- How far is the structure from a fire department
- The condition of the plumbing and electrical systems
- Whether or not the structure is vulnerable to wind damage
- Whether or not there is a flood risk
- Whether or not there is earthquake risk
- How well built (construction quality) and maintained is the structure?
The highlighted factors are affected by ICF construction and may allow the insurer to offer lower premiums as a result of the reduced risk to the structure. The premium reduction can be between 15% and 40% depending on the structure and the insurer.