What key factors determine the cost of your home insurance policy, and is there anything you can do to lower it? Mike Reilly from Farmers Insurance explains today.

Today, Mike Reilly from Farmers Insurance is here to answer a few important questions.

When we do an initial consultation with our clients, I like to go over the key factors that drive the interest rate you will get, such as your credit score and down payment. There are similar things on the insurance side that can cause a change in your price policy.

Mike says that one of them is the size of your home. Your home insurance policy is really insuring the value to rebuild your home should there be a total loss for some reason. So, if your home burns down, what will it cost to build up again? Your insurance company will look at things like the square footage of the home and the complexity of the construction as well.

Another key factor is the fireline score. That can come into play in our area because of the nice foothills and such. The more rural the area and the farther away from the fire department you are, the higher the risk for a fire is, and that could drive up the premium.

“The farther your property is from a fire department, the higher the risk of fire is.”

So, is there anything you can do to drive the price down a bit? The answer is yes.

One of the most common things you can do is bundle your policies. If an insurance company has your home, car, and life policy, the company will give you a discount for that. It’s like buying in bulk. If you have a clean driving record, that will help you too.

You can also look at the amount of coinsurance. The higher the deductible is, the lower the premium will be. However, Mike says that you have to be comfortable with the amount of money you might have to come up with out of pocket should there be a total loss.

If you have any other questions for Mike, you can reach him at (916) 520-6786. As always, if you have any questions for us, just give us a call or send us an email. We would be happy to help you!