It is not easy to ascertain which insurance companies offer the cheapest rates, as most of these are almost standardized. What is possible is by altering the various components of homeowners insurance and varying the number of hazards may reduce the insurance rates for you. Also you might get some discounts depending on several factors where the insurance companies feel that less risk is involved.
Here is a list of few such factors that may affect the insurance costs and lessen your burden.
- Besides the location of the house, the neighborhood of the house also affects insurance costs.
- The present condition of the house; such as the home’s age, also affect the risk factors. Aging homes with primitive wiring and plumbing system pose a potential fire or flooding risks.
- The building material and the type of structure also influence to a great extent the insurance cost of a house. RCC structures pose a lesser risk than wooden or similar old style construction.
- Home insurance deductible will also influence the insurance costs to a large extent. Higher deductibles mean your share of payments will be more in case of filing claims for repairs.
- Insurance claims record also affect the insurance amount. If there have been claims on the house then rates will increase. If there are many claims within a few years then it gets an adverse rating and high risk. Consequently, the insurance company may consider even refuse to ensure the house.
- Personal credit history, if very good can reduce the home insurance premium. If you have also taken other insurances and have been paying premium regularly without any default or claim, then this is considered for offering a discount. However such discounts are capped at a maximum of 25% of the annual premium.
Instead of looking for the cheapest home insurance companies, it makes more sense to go for those who offer better and reliable service when making claims. In several surveys, some of the companies which have been ranked at the top for customer service, claims processing, and value for money are the following:
- USAA Insurance Group
- Chubb Corp.
- Allstate Corp.
- AIG Insurance
- State Farm mutual Automobile Insurance