Homeowners insurance rates are dependent on a variety of factors including the weather, location, safety precautions, cost of rebuilding, etc. Rates differ from place to place but the value of protection stays the same. Plans may seem expensive at first glance, yet the bottom line is homeowners insurance is necessary and essential. A home is a large investment and therefore it only follows that it needs to be adequately protected. Almost all homeowners insure their homes yearly. It is not inexpensive but the security and protection have to be valued. Yet, there are easy ways to significantly decrease your rates.

Obviously one of the largest determining factors is the weather. Therefore, location plays a key role. If you live in an area that is at a higher risk for poor weather, then your rates will definitely be higher. States bordering water such as Florida, Louisiana, Texas, California, etc are subject to higher rates because they are at a larger risk. However, standard premiums are not strictly affected by these higher risks. Rates in some areas will be higher than those in States such as Florida and California because the principle causes of damage are not covered under standard plans. The reason that these areas are at such a greater risk is because of disasters such as earthquakes and floods. However, these usually require additional options/ plans that are specifically design to protect against these elements.

The value of the real estate and the cost to rebuild are also important factors. The insurance rates are higher for those located in the city because rebuilding costs are higher. This is also true for homes located on islands.

Although rates can be expensive, there are multiple things that you can do to achieve an affordable rate. Additional safety precautions may lower rates. The implementation of fire alarms, extinguishers, security alarms, etc will significantly lower premiums. Your credit score is considered when purchasing a plan, therefore increasing this will reduce your insurance rate as well. Also, the longer you hold a plan with a particular company the relationship becomes more solid allowing for a lower rate. They value their loyal customers. Therefore, constantly switching companies for a discounted rate is not necessarily always in your best interest. Choosing the right plan can save you money. Try not to get sucked into buying unrealistic coverage options that do not suite your situation. For the property portion of your homeowners insurance plan, try to keep receipts of your valuables because this will largely determine their value.

The company you choose is of essential importance. Allstate and State Farm are among the most popular providers and have substantial reputations for low rates and superior coverage.

Trackback

Allstate

Nationwide

Geico

AAA

Progressive

AARP

AIG

State Farm

Citizens

Resources