There are a lot of good reasons to stay connected with your neighbors. It is good for neighborhood security, you can help each other out in times of need and you can even share information. You and your neighbor may even have different skills that can be exchanged over time. Comparing homeowners’ insurance rates with your neighbor, however, may not be fruitful. Even if you live in similar houses, comparing what you pay for your homeowners’ insurance can still be like comparing apples to oranges. Here are some reasons you may be paying more (or less) than your neighbor for homeowners’ insurance.
Each Home May Be Constructed of Different Materials
Even though homes may be of similar design and square footage, their construction material may be totally different. Brick homes and stick homes provide different risks for insurance companies and therefore rates can differ significantly. Construction material can also affect the replacement value of a home.
Credit Ratings May Be Different
Insurance companies have discovered that those with poorer credit ratings can be a greater risk and be more costly to maintain as customers. Keeping a good credit score can reflect in lower insurance rates, including homeowners’ insurance.
Some Homes Have Higher Risk Amenities Than Others
If a home has a pool, wood-burning stove or fireplace, it will likely be more expensive to insure than one without these features. Even a hot tub can increase rates. These factors need to be considered when comparing rates with neighbors.
Safety Features Can Lower Rates
If your home has battery-operated smoke detectors and your neighbor has a state-of-the-art, monitored home security system, they will likely qualify for a larger discount. Ask your independent agent how safety and security features like deadbolt locks, security cameras, and security systems can save on your homeowners’ insurance.
Different Insurance Companies Have Differing Rates
Not all insurance companies are the same. Some insurance companies will charge higher rates than others and some agents are “captive” to the one company they work for. This means they only represent the products of that one company. On the other hand, our independent agents can seek out the most competitive rates from a number of companies to best fit your budget. This frequently results in better protection at more economical rates.
Comparing homeowners’ insurance rates with your neighbor can be pointless unless you compare each and every detail. You are best served by working with an independent insurance agent who works at getting you the most competitive rate. Contact us and let our team go to work for you.