Variables That Affect Your Home Insurance Rates

After struggling for months to know what to do about our family finances, I realized that there were some pretty big loopholes in our plan. I knew that I needed to insure our family so that I could protect our money in the event of an accident, but it was really difficult to find the perfect plan. I started talking with an insurance broker who could help, and it was amazing to hear the solid advice that he had for us. This blog is all about insuring your family by finding the right insurance policies and keeping your costs as low as possible.

Variables That Affect Your Home Insurance Rates

10 May 2017
 Categories: Insurance, Blog

There is no doubt that you want to get good home insurance, but you do not want to pay a ridiculous amount to get it. It can be very hard to shop for insurance, but there are a few variables that are going to affect your insurance rate that you may not know about. If you are able to control some of these different variables, you may find that you are able to get a better insurance rate. Here are three variables to look at when you are shopping for home insurance.

Your Credit

The first thing that you really need to have a handle on is your credit. Most people do not check their credit because they do not really understand it. However, your credit score is just a calculated number explaining to lenders whether you are a risk. If you have a high credit score, it means that you are not as risky as someone who has a low credit score. If you want to have the very best insurance rates, you need to take control of your credit. There are companies that will help you improve your credit score. They focus on any items on your credit that may be inaccurate. If they can force the lenders to prove that the negatives items on your report are inaccurate, then they have to come off of your report. Having good credit is going to increase your chances of getting a good insurance rate.

Location Of Your Home

If you are going to be moving into a very rough part of town, your insurance rate might be higher than if you were to move into one of the safer parts of town. Insurance companies know where the safe and rough parts of town are, and they know that it is most likely going to be cheaper for them to offer insurance to someone that is in a safe neighborhood. So, if you can, try to live in a place that has a reputation for being as safe as possible.

Fire Protection

If you put in a home automation system that incorporates fire protection, your insurance company will often give you a discount on your insurance rate. Fires are something that insurance companies have to deal with regularly, and they know if you have a fire alarm system that will notify the authorities, then the damage to your house may be much less than if you did not have the fire alarm system.