Have you noticed your Texas home rates start to increase, even though you have not changed your policy coverage at all? There are a lot of factors that come into play when providers. Here are three.
#1: Hail, Hurricanes, Tornadoes, and Other Natural Disasters
When it comes to your Texas home insurance rates, the first person to blame is Mother Nature. When hail storms, hurricanes, tornadoes, and other natural disasters hit, insurance companies are forced to pay out to repair policyholder homes. This then causes the companies to adjust the level of risk for that area, raising rates. Hurricane Ike is a perfect example of this in Texas.
#2: Robberies, Theft, and Crime
Crime rates are also figured into homeowner’s insurance rates. Have you ever wondered why your rate can be completely different than someone a few blocks away in another zip code? Property insurers look at crime statistics to help determine the level of risk for the homes they cover. In areas where the crime rate shows an increased likelihood of a home being broken into, the insurance rates are higher.
#3: Your Individual Number of Claims
Nobody wants to have to file a claim with their insurance carrier. However, there are times in which doing so is your only option. After filing a claim on your home insurance policy, expect an increase in rates for a minimum of two to three years. Why? Insurers make most of their money off those who pay premiums, yet never have a need to use their coverage. To encourage this, companies offer discounts to customers who do not file claims. Filing even one small claim can cause you to lose this discount until enough time has passed.
For more information on how to lower your home insurance rates, speak to your local Lufkin independent agent.