Factors That Help Determine Home Insurance Premiums
Closing on a home is an exciting time and there are going to be a lot of different thoughts running through your head. More than likely your realtor or the lender has mentioned that it is important to have home insurance before you close on the house. In fact, most of the time the loan is approved on the basis that you have homeowners insurance. The good news is that it is usually not very hard to obtain, and there are going to be many insurance agents that are more than happy to give you quotes. However, there are a few different variables that are in your control that will help you get the best rates. Many of these variables will be coming from years back, but they are under your control. Here are a few variables that are in your control that will have an impact on your insurance rate.
One factor that is going to have a big impact on your homeowners insurance premium is your credit score. The companies are going to look at your credit score to see how you have been with your money. They want to know if historically you have paid your bills on time, and if they have to worry about you paying the bill. If you have a high credit score, the company knows that you are responsible with your money. If you have a low score, the insurance company is going to view you as a risk and elevate your insurance premium. If you find that your score is not where you want it to be, then start to work on improving your credit. If your credit improves over the course of a year, then you can try to get less expensive insurance.
Location Of Home
The location of your home is important on a large and on a small scale. If you live in tornado ally in Oklahoma, you are going to need to have tornado insurance on your home. If you live on the coast of Florida, you are going to need to have hurricane insurance on your home. These are large scale locations that the insurance company will take into consideration when determining your insurance premium. On a smaller scale, the neighborhood that you live in can dictate a portion of your insurance premium. If you live in a historically safe neighborhood, your insurance premium will be impacted positively. If you live in a rough neighborhood you may see elevated insurance rates.