5 Facts That Every Homeowner Needs to Know about Home Insurance Premiums

There are facts that every homeowner needs to know about home insurance premiums. The problem is most of the time, no one tells homeowners. These facts that every homeowner needs to know about home insurance premiums could save some homeowners money. As they say, knowledge is power and it’s time to get knowledgeable about the kinds of things determine your home insurance premium and if there is anything you can do about them.

Here we will look at seven facts that every homeowner needs to know about home insurance premiums. You will have a better idea of how your home insurance premiums are calculated and if there is anything you can do to save money.

1. Credit is King

Most of us understand that good credit is important, but we may not truly grasp how credit affects almost every area of our life. Your credit rating will determine the kind of phone plan you qualify for, the number of deposits you make on utilities and cable services, and even whether or not you get a job.

Credit affects your insurance premium too. One of the first facts that every homeowner needs to know about home insurance premiums is that credit is king. Your credit is going to affect your premium. Insurers in most states use what is called an insurance score. The score is based on credit and your score helps determine your premium.

2. Claims Don’t Always Count

Many homeowners take great measures to not file a claim on their home insurance. The concern is that filing a claim will cause their premiums to skyrocket. Claims don’t always cause increases is one of the facts that every homeowner needs to know about home insurance premiums.

Insurance companies do assign a surcharge if there is a large claim – typically over a certain threshold used by the companies, but smaller claims may not lead to an increase at all. So, if you’re in a bind and could use some help from your homeowner insurance, don’t hesitate to call it in.

3. Discounts and Facts That Every Homeowner Needs to Know About Home Insurance Premiums

Insurance companies love to give discounts. Knowing what those discounts are, and how to get them is among the facts that every homeowner needs to know about home insurance premiums. Discounts can have an effect on your rate. For example, having a monitored fire and burglar alarm on your home can save you a few hundred dollars a year.

There are also discounts for impact resistant glass, certain types of roof construction and multi-policy discounts.

If you aren’t sure if you’re getting the proper discounts, it’s worth it to give your insurance company a call and ask them to review them with you. Discounts should not be overlooked as facts that every homeowner needs to know about home insurance premiums.

4. Location matters

The location of your effects your premium is one of the facts that every homeowner needs to know about home insurance premiums.

Your home’s location is a factor used when underwriters and analysts come up with how much it costs to insure your home. For example, some areas and neighborhoods may be more susceptible to crime such as burglary or vandalism. Other neighborhoods may be exposed to a natural disaster such as homeowners along the coast. Also, homes near bodies of water such as rivers or lakes are more likely to flood. All these factors affect the home insurance premium and are facts that every homeowner needs to know about insurance premiums. 

5. Rates and Facts That Every Homeowner Needs to Know About Home Insurance Premiums

Along with location, insurance companies look at other factors when calculating your home insurance rate. What those factors are is among the facts that every homeowner needs to know about insurance premiums. Here’s an overview:

• Home details: Insurers look at your home’s age, construction and size.
• Replacement Cost: How much it’s going to cost to rebuild or replace your home if you suffer a catastrophic total loss. The more expensive to replace your home, the higher the premium.
• Personal Property: The value of your personal property is going to affect your premium. Make sure you have a thorough inventory of your personal property so if you do have to file a claim you can recall easily what was in your home.
• Liability coverage: Liability coverage is one of the lesser known facts that every homeowner needs to know about home insurance premiums. This coverage will kick in if someone is injured on your property or has their property damaged.

Home insurance rates can vary from company to company, so it does pay to shop around. Don’t think premiums are the same no matter where you purchase your insurance. Comparison shopping is among the facts that every homeowner needs to know about home insurance premiums.

When you are shopping your home insurance, just make sure you are comparing apples to apples – that the coverages are the same, so you can get a true picture of any premium savings.

There are some things that can drive your home insurance rates up. For example, certain types of dog breeds may cause a surcharge on a policy. 

Poor maintenance can also drive up the cost of home insurance. If you are concerned about any of these items affecting your rate, contact your insurance professional.

Hire Bulldog Adjusters to Help With Your Home Insurance Claim

Instead of relying on the insurance company to calculate a fair settlement offer, you can have someone in your corner who will make sure that everything goes smoothly. As the homeowner, it is not expected for you to know exactly what is covered in your insurance policy, let alone the loopholes that insurance companies use to their advantage during the fight for a check.

Bulldog Adjusters has over ten years of experience in the field. Our adjusters are homeowners as well, people who know what it’s like to deal with insurance companies over property damage. We’re practiced in making sure that homeowners get the largest possible settlement from their insurance companies. If you have property damage and loss as a result of a natural disaster or other incident and you’ve received a lowballed claim settlement by your insurance company, reach out today to find out how we can help you!