insurance premiums – Homeowners Insurance Tips and News Fri, 28 Jun 2013 15:01:02 +0000 en-US hourly 1 5 Homes You Wouldn’t Want to Pay the Insurance Premiums For Tue, 02 Nov 2010 22:21:20 +0000

Most of us dream of having a big house someday. A huge yard with rolling hills and a stately mansion in whatever style you like best may be on your wish list, but even if you could afford one, you probably wouldn’t want to pay the high homeowners insurance premiums.

Of course, there are mansions, and then there are mansions. While most of us aren’t totally out of our gourds to dream about someday having our business take off or hitting the lotto and finally buying that million dollar house on a hill, here are 5 houses that are beyond most of our wildest dreams. Imagine paying the homeowners insurance premiums on one of these babies:

  1. Antilla. Located in Mumbai, India, this $1 billion (that’s right, billion, not million, but billion) dollar home has more stories (27) than many smaller mansions have rooms. The home, which is dog ugly and looks like a glass and steel version of a Jenga game gone wrong, is the only house in the world valued at or above the billion dollar mark. It’s owned by Indian oil tycoon Mukesh Ambani.
  2. Franchuk Villa. It was a girls’ school for years, but the opulent Victorian mansion, valued at over $160 million is now the home of Elena Franchuk, who is known for her philanthropic work with causes relating to AIDS research.
  3. Villa Leopolda. Located in the beautiful Cote d’Azur region of Belgium, this $525 million mansion was constructed in the early 20th Century for Belgian King Leopold II. For all its opulence, though, the chateau only has 19 bedrooms. What it lacks in bedrooms, however, it does make up for in landscaping and amenities.
  4. Fairfield Pond. The largest home in the United States, this 29 bedroom home, located right on the beach in The Hamptons, would sell for a cool $170 million. If you can’t afford that, you might consider purchasing one of the tubs. They’re only $150,000.
  5. Dracula’s Castle. Yes, there was a Dracula, and yes, he did have a castle. It’s worth $135 million, which is pretty impressive value retention for a home which was built in the 1300s. It has more than 50 rooms, 17 bedchambers, and (rumor has it) one vampire, which can be convenient for eliminating unwanted guests. Of course, adding a vampire rider to your homeowners policy is a bit cost prohibitive for most.
]]> 0
Understanding Insurance Scores Thu, 07 Oct 2010 15:53:19 +0000

Insurance companies are rated based on their overall financial health and ability to meet their fiscal obligations. Individuals have credit scores, which basically correspond to the same idea. A consumer’s credit score is a three-digit number that represents the individual’s creditworthiness. It is used when determining whether to loan money to consumers, and is often a good indicator of overall financial health.

Insurance scores are somewhat like consumer credit scores. They are based on information contained in consumer credit reports, but the algorithms they use are proprietary and therefore not made available to the general public. Since the calculations are based on the data in your credit file, though, you have some measure of control over your insurance score, and you can and should work to improve it.

  • Your insurance score is intended to gauge the likelihood that you will file a claim against your insurance.
  • High insurance scores are like high credit scores. The higher the score, the lower the risk you are believed to pose to an insurance company.
  • Insurance scores are used in determining the premiums you’ll pay for all kinds of insurance plans, including auto insurance, homeowners insurance, renters insurance, and more.
  • Some states limit or regulate how consumer credit information can be used when determining insurance premiums.
  • The insurance score most often used by insurance companies was created by FICO and is referred to by different names at the different credit reporting agencies. Equifax calls it InScore®, TransUnion names it Fair Isaac Insurance Risk Score®, and Experian refers to it as Experian/Fair Isaac Insurance Score. All of these calculations are based on the algorithms created by FICO.
  • In calculating your insurance score, your credit information is compared with that of other people. Your insurance score therefore represents a relative risk factor. That is, insurance scores evaluate the claims risk that you pose to an insurer in relation to the risk that other people pose. Your number may be higher or lower based not only on your credit file, but on the general creditworthiness of the consumer market.
  • Data from millions of past individual insurance claims help to isolate the factors that are associated with an increased risk of claims. These are assumed to be effective predictors of future claims risks.
  • Since the calculations are kept secret, no one can say for sure exactly how to improve your credit score. It is believed, however, that the same things that affect your credit score will also impact your insurance score.
  • There are other factors that are likely to have more impact on your policy premiums than your insurance score, but that doesn’t mean insurance scores aren’t important.

Make sure you know what’s on your credit report. Request a free copy annually at a minimum, and be sure to check it for errors. If you use your credit wisely, you can expect to have a strong insurance score and get the lowest premiums possible.

]]> 0
Claims That Raise Your Premiums Mon, 04 Oct 2010 15:34:09 +0000

These days it seems like everyone is stretched to the financial limit, with so many unemployed and even more struggling to make ends meet. The last thing you need is an increase in your homeowners insurance premium, but that’s just what’s in store for many who file claims.

There are three types of claims you can make against homeowners insurance that are most likely to trigger a rate increase the next time you renew.

  • Dog Bites. Both the number and the costs of dog bite claims have been rising over the past few years, prompting many insurers to take action against dog owners. Whether they refuse to renew a policy or simply exclude dog bites from your coverage, you may find that filing a claim because your dog bit someone could result in loss of coverage. Even when it doesn’t cause you to lose your policy, your insurer may raise your rates the next time you’re up for renewal.
  • Water Damage. Even if you don’t live in a flood plain, filing a claim for water damage could trigger automatic increases in your policy’s premium. This is true not only because of concerns over future flooding, but also because of the high risk of mold and the exorbitant cost of having it removed. In many cases, homes with mold are considered a health risk, and removing all of it can take a lot of time and money.
  • Slip-and-Fall Claims. This is a general term used for any injury that happens when someone trips, slips, or falls down in your home.

Before you fill out a claim on your homeowner’s policy, think about other ways of covering the costs.

  • If the injured person is a member of your family, it may be best to have your medical insurance company foot the bill rather than filing a slip-and-fall claim.
  • If the cost of water damage or a dog bite is manageable without filing a claim, think about taking care of it yourself.
  • Even if the cost is a bit more than you can handle out-of-pocket, you might want to consider borrowing the money at a low interest rate rather than filing a claim that could hike your rates. It might just save you some money.

When costs are unknown or ongoing, such as a serious dog bite or slip-and-fall injury that requires surgery or hospitalization, filing a claim with your insurance company may be the only way to protect your assets from a lawsuit. Carefully consider your options before filing any claim, though, and take steps to keep your home safe.

]]> 0
45 Articles on Ways to Lower Your Home Insurance Premiums Sun, 01 Aug 2010 21:54:11 +0000

Buying insurance for your home is an easy enough process. There are plenty of insurance companies just waiting to do business with you, but sometimes issues can arise when it comes to the cost of the insurance. Premiums for house insurance are dependent on different factors. If you want to get the most insurance for your home at the lowest premium, you need to know what you can do to make your home more “insurable”.

These articles will provide you with valuable suggestions and advice on lowering your home insurance premiums. With just a bit of effort, you can have the peace of mind that home insurance brings without breaking the bank.

  1. How to Lower Your Homeowners Insurance Premiums – Eight helpful tips on reducing your insurance premiums, including shopping around and raising your deductible.
  2. Keep Your Home Insurance Costs Down – Seven tips on lowering the cost of your homeowners insurance, such as grouping policies together.
  3. A Quick Way to Lower Your Monthly Mortgage Payment – Tips on lowering your insurance premium to lower your mortgage payment.
  4. Seven Ways to Reduce Your Home Insurance Premium – Seven useful tips on lowering your insurance premium, including installing an alarm system.
  5. Twelve Factors that Affect Your Insurance Rates – Informative article on different things that can raise your premiums and ways to reduce them.
  6. Ten Ways to Lower Your Homeowners Insurance Cost – Ten things to do to reduce your insurance cost, such as staying with the same insurer.
  7. A Few of Our Favorite Things – Easy ways to lower homeowners insurance rates, including maintenance of your home and yard.
  8. Five Ways to Lower Your Premiums Right Now – Five tips on lowering your premiums, like shopping around and making home improvements.
  9. Reduce Your Home Insurance Premium – Eight useful tips on lowering your insurance premium.
  10. How to Save Money on Your Insurance Rates – Ten ways to save money on your homeowners insurance, such as paying your premium in full.
  11. Tips to Keep Your Homeowners Insurance Low – Six tips for lowering your premiums, such as fencing your pool or trampoline.
  12. Five Tips that will Lower Your Homeowners Insurance Costs – Five helpful suggestions for lowering your insurance costs, including eliminating unneeded coverage.
  13. Six Tips to Lower Your Homeowners Insurance Costs – Six useful ideas for reducing your insurance costs, like insuring the house, not the land.
  14. Five Ways to Save on Homeowners Insurance – Information and short video on ways to save money on your insurance.
  15. Five Easy Ways to Lower Your Home Insurance Rates – Five tips on lowering your insurance costs, like increasing your deductible.
  16. Lower Your Mortgage Payment without a Loan Restructure – Tips on lowering your mortgage payment by reducing the cost of your home insurance.
  17. Twelve Ways to Lower Your Insurance Costs – Twelve helpful tips on reducing the cost of your insurance, including reviewing your needs once a year.
  18. Lower Your House Payment – Another article on reducing mortgage payments by reducing the cost of insurance premiums.
  19. Smart Ways to Lower Your Premiums – Six useful tips for reducing your premiums, including paying off your mortgage.
  20. Eleven Tips on Reducing and Saving on Homeowners Insurance – Eleven suggestions for saving money on insurance, such as calling agents with questions.
  21. Home Insurance Tricks – Helpful ways to cut the cost of your insurance premiums.
  22. Ten Tips to Reduce Your Home Insurance Costs – Ten helpful tips for saving money on your premiums, such as researching the location.
  23. Reduce Your Monthly Fixed Expenses – Information on reducing expenses to save money, including tips on lowering insurance premiums.
  24. Tips on Budgeting – Information on lowering expenses, including umbrella insurance to save on premiums.
  25. Seven Tips Toward Helping Reduce Your Insurance Costs – Seven useful ways you can lower your premiums, such as not making small claims.
  26. Homeowners Insurance Basics – Basic information on insurance, including the average cost and ways to reduce the cost.
  27. Five Ways to Reduce Your Fixed Monthly Expenses – Suggestions for lowering monthly expenses, including ways to lower insurance costs.
  28. Tips to Reduce the Cost of Your House Insurance – Ten tips for lowering your premiums, such as checking for neighborhood watch program discounts.
  29. Lower Rates for Home Insurance – Useful ways to ensure that your premiums are low, including the fact that newer homes cost less to insure.
  30. Consumer Home Insurance Information – Information on the basics of homeowners insurance, including factors that affect the premium rate.
  31. Tips for Lowering Rates – Helpful suggestions for lowering insurance rates, like making safety improvements to your home to lower home insurance rates.
  32. Getting Affordable Home Insurance Premiums is Easy – Helpful ways to get the best premiums for your homeowners insurance.
  33. Quick Tips to Save on Home Insurance – A few tips on reducing the cost of your insurance, including reducing the risk of fire.
  34. Eleven Dog Breeds that will Make Your Insurance Climb – Information on breeds of dogs to avoid owning if you want to keep your premiums affordable.
  35. Home Insurance Myths You Shouldn’t Believe In – Several myths that people tend to believe about home insurance, including lowering coverage to save money. Points out a few ways to save money without losing coverage.
  36. Simple Tips to Obtain the Best Rate – Easy ways to lower your home insurance rates, such as being a non-smoker.
  37. Cheap Home Insurance – Information on home insurance in Oregon and a ways to lower your premiums.
  38. Home Insurance in San Diego – Useful information on home insurance and ways to lower your rates in San Diego.
  39. Nine Tips to Reduce Your Rates – Nine helpful ways to lower your premium, such as remodeling.
  40. Clean Up the Clutter – Discussion on how hoarding can cause your premiums to rise due to fire risk or even cause your insurance to get cancelled.
  41. Home Insurance – Helpful information on shopping for home insurance and ways to save money on the premium.
  42. Lower Your Homeowners Insurance Premium Rates – Five tips on lowering your premium, such as not buying coverage you do not need.
  43. Tips to Lower Your Premium – Five ways to get better rates on home insurance, including getting several quotes for comparisons.
  44. Home Insurance: Keep This in Mind – A few tips to remember about home insurance and the suggestion of comparison-shopping to ensure the best rates.
  45. Higher Deductibles for Lower Insurance Premiums – Information on how a higher deductible can save you money on home insurance.

Image Credits: FritsM

]]> 0