No two homes are alike, even if they are a carbon copy of one another. The same is true for homeowners. There are subtle differences when you start to compare the policies, the property, and the people who purchase them. When you start to go over the different factors, you will begin to see why there may be significant variations in what you pay for your policies.
Here are a few factors that may cause your home insurance premiums to be different from your neighbors:
You may own expensive items that need additional insurance. You may also choose to insure your home for its replacement cost instead of its cash value. The amount of coverage you purchase will influence the cost of your policy. Know how much coverage you need and purchase your insurance accordingly.
Premiums and deductibles will also play a major role in what you pay for your homeowners' coverage. A higher deductible will lower the cost of your premiums. Lower deductibles will increase the amount you pay for your premiums.
Your credit score will also affect your premiums. If you have a poor credit history and your score is low, it may look as if you are irresponsible when paying your bills. Whether or not that is the case, it will still impact how much you pay for your premiums. Go over your credit reports and look for ways to raise your credit scores. Even bringing them up a few points can help reduce the overall cost of your insurance premiums.
You may be considered high risk if you have filed many small claims in the past. An accident or multiple tickets may also indicate that you are at high risk when it comes to auto insurance. Knowing your potential risk factors will help you resolve them so you can get more affordable coverage.
A captive agent sells insurance from a single insurance company. In contrast, an independent agent can offer you policies from many different carriers, thus allowing you to choose the right one. It will also allow you to find a policy that best fits your budget.