It’s a beautiful evening, and you are sitting on your lanai talking to some of your closest friends. You’ve known each other for years, and love living in the same neighborhood. The talk turns to homeowners insurance, as you are currently looking at quotes. You ask your friends what they pay for their coverage – and you are shocked at their answer.
“How can my homeowner’s insurance be so much more than my neighbor’s coverage? We live in the same neighborhood!”
Even though you live in the same neighborhood, there are many other factors which may come into play when insurance companies quote your specific coverage. Understanding these variables may help you to save hundreds or even thousands of dollars over the years.
Higher Deductible: Same house, same age, same features – so why do they pay less? You may want to ask about their deductibles. As with all insurance, a higher deductible will result in lower monthly rates.
Contents of the Home: If you have expensive furniture, a lot of precious jewelry, and priceless works of art, your replacement costs will be much higher than the average homeowner.
Your Credit History: Whether a fair measure or not, insurance companies have established that those with higher credit scores, as a rule, take better care of their property. The higher the score, the better the rate is likely to be. In the same vein, if you have recently submitted several claims, your insurance company may perceive more risk.
Security Measures: Your premium is likely to be lower if you have measures in place to protect your home and property, such as the installation of hurricane protection, security cameras, or alarms.
Your Beloved Pet: There are some dog breeds considered “dangerous” by insurance companies. Even if your dog is a gentle giant who would never hurt anyone, the insurance company may see the animal as a risk.
Square Footage: As you might expect, the larger the home, the more there is to insure. Homes often look similar from the outside but may have more rooms and more square footage.
Features & Materials: If you used more expensive materials when building the home – a higher-quality roof, for instance – the cost of replacement is higher, possibly resulting in higher rates. Similarly, any extra feature has the same result, i.e. a screened patio.
Recreational Risk: A swimming pool will almost always result in a higher homeowner’s insurance premium than your non-swimming neighbor enjoys. There is simply a greater liability as the chance of injury increases. Similarly, a trampoline or treehouse for the kids may incur higher rates.
Multiple Coverages: Many insurance companies will offer incentives for those who bundle coverage. You may be able to get a better rate by procuring your home, car and health insurance from the same company.
Of course, the insurance company that you purchase coverage from will also have an impact on your rate. If you are looking for homeowners insurance in Palmetto or surrounding areas, call several companies to obtain competitive quotes. But call Anderson & Associates last – our nearly 4,000 clients can attest to the fact that we work hard to get your best coverage, and we treat you like family.
And if your neighbor is jealous of your great new homeowner’s policy, have them give us a call too. 🙂
