When you are looking for home insurance you can often save some money by shopping around. However, there are certain factors that all insurance companies will take into account when working out your premium. There are changes you can make with regards to some of these factors but not all of them. When you are aware of these factors you can determine how many of them apply to you.
Age Of Property
Generally speaking, the older the property is the more that is will cost to insure. This is because older homes are more likely to have things that need fixing compared to newer homes. The cost of the materials that are needed to make these repairs may also be higher. If you live in an old house but have made some improvements then you should always tell your insurance company about these as it may reduce your premiums.
Type Of Property
The type of property that you live in will also affect the insurance. You may find that you pay more in a rental property than you would do if you owned a home. A holiday home that is not lived in all year round may also cost more as the insurance company would consider this to be a higher risk for break ins.
Location Of The Property
There are certain locations where you might find that you pay more for insurance. If you live near the coast or have a river running near your home then the risk of flooding increases which will make your premiums higher. Even things such as how close you are to the nearest fire station can have an impact. There is not much you can do to reduce your premiums in this situation but it can help if you take insurance payments into account when you first begin to budget for living in this area.
If you live in a neighborhood where there is a high crime rate then this can have an influence on your insurance premiums. Insurance companies will consider it a greater risk that your home may be broken into or damaged in some other way. This can seem unfair, especially in places where the reputation of a neighborhood bears no similarity to the reality that you know.
One of the biggest influences on the price that you will pay for your insurance is your credit score. The better your score the less you will pay for insurance as you will be considered less of a risk. There are several things that determine your credit score but insurance companies will generally be looking for proof that you pay your bills on time.
Insurance companies will also look at the amount of claims that you have made previously. Most companies follow the logic that if you have claimed in the past you are more likely to do so again. Therefore they will increase your premiums to cover the cost of paying out more often. If you experience a small amount of damage at your property it may be cheaper in the long run to sort it out yourself rather than claiming on the insurance.