Insurance companies consider many factors when setting homeowner rates. Understanding how this affects your premiums - as well as shopping around - can save you money. Rate-influencing factors include:
Rates vary based upon where your house is located. Crime, wind damage and other risks vary by geographic area.
Rates vary based on the type of construction. For example, a wood vs. a brick home.
Amount of insurance
Your premium will vary depending on the replacement cost of your home. The cost to actually rebuild your home may exceed its current market or sales price.
Talk to your agent or company to see if you have the right amount of coverage.
Insurance companies may use information in your credit history to decide if they'll offer you coverage and to calculate your premium. Each company weighs these factors differently, so your score will vary from company to company.
If your credit insurance score causes you to pay a higher premium, the company must tell you what factors caused the increase. You should also be aware of information insurers cannot use to determine your premium.
Some companies may charge you more based on the number or types of claims you file. They may even cancel your coverage due to one or more claims.
Ask your agent or your company how they treat claim history.