Why is my homeowners insurance so high?

If you have a mortgage on your home, you more than likely need to have homeowners insurance. Knowing what can effect your home insurance premium can save you money and give you more peace of mind in knowing you’re getting a good rate.

Homeowners insurance covers loss or damages to your home caused by a cover peril. When you carry a mortgage on your home the mortgage lender usually requires you carry adequate insurance. These rules and regulations can vary from state to state and home insurance company to home insurance company. 

If you notice your home insurance is high or there was a sudden change, you’ll always want to contact your home insurance company directly. Another option is to speak to your homeowners insurance agent. If you’re home insurance premium is too high and you live in California and would like to shop around for a better deal, Call Eugene C Yates Insurance Agency. The agents are experts when it comes to home insurance and they have access to some of the best home insurance companies in the industry. Call them today at 916 313 6100

What determines a home insurance premium?

To know how to lower our home insurance premium let’s first take a look at what plays a part in effecting or rates. There are a few determining factors when it comes to home insurance and these can vary from state to state and home insurance company to home insurance company so please always check with your home insurance company within your state to find concrete information regarding your home insurance policy. 

In some states your credit score can play a part in how much you pay for home insurance. States that use credit score to determine home insurance rates refer to this as, your credit based insurance score. They will use your financial history to determine your home insurance rate based on the likelihood of you filing a home insurance claim. If you have poor credit you may expect to have high home insurance rates. 

Your home insurance deductible plays a big part in determining your homeowners insurance rate as well. The higher your deductible, the lower your home insurance premiums are. The lower your deductible, the higher your homeowners insurance rates are. If you do decide to take the higher deductible to save money on the monthly payment, please make sure you have the money to cover it if the worst were to happen. 

The age of your home and the condition it’s in. Your home insurance rate is partially determined by the condition of your home. Homeowners insurance is based off risk and if your home appears to be more of a risk due to wear and tear you might be looking at higher home insurance premiums. Your home insurance company wants to know you keep up with repairs and maintenance of the home. The better condition it’s in can help you save money on your home insurance. 

The location of your home. Location plays a role in determining your rate depending on the risk of the neighborhood or even if you live closer to the coast line. If more risk is involved, more than likely higher insurance rates are in the same conversation. 

The value of your personal belongings. If you have very valuable items in your home, you may need additional coverage to cover their amounts. As we know if we have a more expensive home than or neighbors, we will probably have a higher home insurance rate as well. Mostly due to it potentially costing more to repair of fix your home. 

How can I save money on home insurance?

We know home insurance can get expensive and saving money can always help out. One thing we do want to keep in mind is that saving the most on home insurance may not always be your best route. You’ll want to make sure you get the home insurance policy that’s right for you. That’s why we recommend shopping around. 

This is where Eugene C Yates Insurance Agency can help. They have access to the best home insurance companies in the industry. They can take your personal situation and shop around with multiple insurance companies. This makes getting home insurance easy, affordable and fast! Give us a call today! We’re nice people and we have great rates! 916 313 6100