Factors Affecting Home Insurance Rates

When buying your homeowner’s insurance (which, if you are a homeowner you should obtain immediately), there are many different factors at play in the rate your insurance agent will produce for your home. Knowing these factors as you go into the process of buying insurance, can help you reduce your initial rate and keep it low over time.

Home Vulnerability

What is your home made of? As the three little pigs found out, brick was the best material to build out of. If your home is made of brick or another non-flammable material, you are more likely to get lower rates on your insurance. A home down the street from a fire department or near a fire hydrant can also result in lower insurance rates.


Older homes are more prone to having outdated systems which pose a risk, so newer homes are likely to have discounts old houses will not. Don’t own a new home? Don’t lose hope! Home improvements will provide discounts as well.

Credit Scores

A good credit score will lead your agent to provide a lower insurance rate. Check your credit score for errors, and find other ways to boost your credit before you look to get homeowners insurance.

More Coverage, Higher Premium

The more coverage you have, the higher your premium. Lower monthly premiums by reducing coverage. But remember: reduced coverage means that you must start paying out of pocket when the funds provided by your coverage are exhausted.

Deductible Rate

A high deductible means a lower monthly cost but more out-of-pocket expense, while a low deductible requires higher monthly payments but less emergency cash.

Discounts, discounts, discounts

According to CNN Money, consumers spend $300 million more than they would if they simply asked agents for discounts. Discounts can be for anything from having smoke alarms, to multiple policies within one agency.

Still have questions about homeowners insurance? Call BMR Insurance at 714-838-1911 for expert advice and a free quote.

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