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June 24, 2024

Understanding Home Insurance and How Your Rates Are Determined

For many people, purchasing a home may represent one of the most expensive transactions in their lifetimes, and failing to maintain suitable financial security could have dire consequences. Home insurance represents a versatile loss control measure, potentially providing critical financial assistance during difficult times.

At the S & G Mitchell Insurance Agency, we strive to assist homeowners and families by providing guidance on home insurance.white and brown concrete house near green trees during daytime

Why Do I Need Home Insurance?

While home insurance is not typically required by law, you may be obligated to carry coverage if you have a mortgage. Most lenders mandate minimum levels of insurance throughout your loan to protect their investment.

Beyond such requirements, home insurance should still be considered an advisable investment. Lacking sufficient coverage could leave you without the means to repair or rebuild your home, or otherwise unable to respond to difficult financial situations.

How Much Does Home Insurance Cost?

Home insurance companies must thoroughly analyze your home, family and other unique circumstances when assessing your risk levels. While carriers may use varying criteria when calculating quotes, they often include consideration of the following factors:

  • Structural specifications (e.g., age, building materials used and number of floors)
  • Location
  • Property features (e.g., security systems and deadbolt locks)
  • Estimated rebuild cost
  • Liability risks (e.g., attractive nuisances and pets)
  • Deductibles
  • Coverage limits
  • Endorsements

How Can I Lower My Home Insurance Rates?

While some of the aforementioned criteria considered by insurance companies, such as location, may be beyond your control, there are steps you can take to limit or reduce your premiums. Consider the following strategies when seeking to save on your home coverage:

  • Shop around. An independent insurance agent, such as those at the S&G Mitchell Company, can help you compare policies from many carriers. This may help you find coverage tailored to your needs at the best price.
  • Bundle coverage. Purchasing multiple insurance policies from the same carrier, such as home and auto, may garner lower total costs.
  • Fortify property. Making your home more resistant to certain incidents, such as severe weather and crime, may help reduce rates. Consider installing storm shutters, using fire-resistant materials and purchasing a security system.
  • Reduce liabilities. While some home amenities, such as swimming pools and firepits, may be enjoyable, they can also increase your liability risks. Removing them may reduce premiums.
  • Adjust coverage. Making changes to your policy may help you achieve lower rates. For example, increasing your deductible could lower your premiums, although this would likely mean higher out-of-pocket costs after covered incidents.

We’re Here to Help

Contact the S & G Mitchell Insurance Agency today to learn more about home insurance or to compare personalized quotes.


This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.



Categories: Home Insurance

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