How come your neighbor with the same model house as yours is paying less than you are paying for home insurance? It’s certainly not because they make more money than you or are smarter than you. The probability of you filing a claim has a lot to do with determining the amount you will pay for home insurance. 

Risk Assessment  
Insurance companies do not play favorites when determining your premium. They look at many different variables to assess the probability of you filing a claim and the likely amount of that claim. While far from an exact science, each insurance company has an algorithm that helps predict risk. The reason you might pay more than your neighbor for home insurance is directly related to how you are scored for risk. 

The Insurance Company You Choose 
Each insurance company has their own way of determining risk. They may place a greater weight on the age of a house instead of the age of the owner. The may reward you with a lower premium for every year you are with them and do not file a claim. To get the best rates, it’s advisable to get quotes from a number of different insurance companies. An independent agent can do the work for you and help you get the right type and amount of coverage you need at a price you can afford. 

Other Factors that Can Affect Your Home Insurance Premium 
An older house usually costs more to insure than a newer house because there is a greater chance of needing repairs and having to file a claim. A pipe might break and flood your house, or a problem with old wiring might cause a fire. An old roof is more likely to be compromised in a storm. 

• Being close to a fire hydrant or the fire station can lower your premium because if a fire should occur, help may arrive sooner and there will be a nearby source of water. 
• Filing multiple claims in a short period of time will probably send your premium up, even if the reason for the claim was not your fault.  
• People with high credit scores sometimes get a break on their premium because statistics show that homeowners with high credit scores file fewer claims than homeowners with low credit scores. 

Wondering what your risk factors are and how they affect your home insurance premiums? Talk to a licensed agent today to get the most out of your coverage.