Personal Factors Impact Home Insurance Premiums

Individuals in Lafayette, CO may be surprised to realize that personal factors will impact home insurance premiums. While people may wonder how their own personal qualities impact home insurance, the fact remains that insurance companies take every factor into account when calculating a home insurance rate. Make sure to take steps to minimize personal considerations that lead to higher home insurance premiums.

First of all, many people don’t know that smoking will lead to higher insurance premiums. While this might seem unfair, the fact is that a cigarette is an open flame. Cigarettes in the home lead to a higher risk of the house catching fire. This can lead to a large claim being filed against the home insurance policy that an insurance company is on the hook for. Insurance companies adjust their premiums accordingly because anyone who smokes has a higher chance of burning their house down.

Next, a good credit score can lead to much lower insurance premiums. Anyone with a good credit score has demonstrated that they have a history of paying their bills, such as their insurance costs, on time. This means the company can rely on the customer to pay their insurance payments on time. The company rewards fiscal responsibility with a lower insurance rate.

Finally, people who have a history of filing insurance claims will be forced to pay higher insurance premiums. Companies know that people who have filed a claim in the past have a greater chance of filing a claim in the future. Therefore, insurance companies will hedge their risks by charging these individuals a higher home insurance rate. Make sure to only file insurance claims when necessary. If the deductible is more costly than the actual repair, home owners should pay for the repair themselves.

When it comes to the residents of Lafayette, CO, ensure that nobody is paying more for home insurance than they must. Take steps to control personal factors that will lead to higher home insurance premiums. Contact 1st American Insurance Agency today.