Home Insurance Rates
When shopping for a home insurance policy, there is more to consider than just the cost. It needs to be the right type of policy. The property needs to have the right amount of protection, plus special provisions for any valuables in the home. The property might need additional coverage for natural acts like flooding and earthquakes.
The standard terms of a homeowner’s policy have been determined by the ISO (Insurance Services Office). This means the standard coverage will be the same with every provider, but the rates many vary.
There are three basic conditions that qualify a homeowner (or even a renter) for an insurance policy:
1. Being an owner-occupant of a private home. The individual or family owns the private home and resides there.
2. Being an owner or owner occupant of residential condominiums. The individual or family owns the private condominiums and resides there.
3. Being a tenant of a residential property. The person who rents or leases the property resides there.
The location of a home plays a part in determining the insurance rates. For example, a home in location at risk for natural disaster will always have higher rates because of the increased claims in the area.
Finding the Lowest Home Insurance Rates
A lesser known fact—demographics like age, marital status, and sex contribute to home insurance rates too. A homeowner’s credit score is another factor. There is a correlation between high insurance claims and lower credit scores. All of these factors that determine insurance rates may seem discriminatory to a homeowner, but actually allow companies to balance out the risks factors from a statistical standpoint.
A homeowner may not be able to adjust his demographics, but there are some other ways to be able to save on a policy.
1. Combine multiple insurance coverages. Some insurers will lower a rate by as much as 20 percent by combining more than one policy together.
2. Raise deductible. Just like raising an auto deductible with lower a rate, so will raising a homeowners deductible.
3. Safety equipment. Monitor alarms and the like may provide additional reductions.
4. Having a good credit score. Keep your credit rating good and having little or no credit will tend to keep rates lower. Check your credit record on a regular basis to correct any errors or mistakes.
5. Shop around for a policy. Compare several companies and look on the internet for special offers provided.