Person A has pretty good credit and has never filed claims on his home insurance. Person B has pretty good credit and has never filed claims on his home insurance. You might think that a quote from the same company on home insurance would produce similar, if not identical, results, right? Unless they get a quote on the same house at the same time, their quotes will probably be different. Why is that? Why do home insurance rates seem so random?

The home insurance rates are not really random at all. Every insurance company doing business in Nevada has to file its rating structure with the Nevada Department of Insurance. DOI may reject the rating structure if it deems it unfair or illegal. Once the rating system is approved, the insurance company must apply the rating structure to all potential policyholders equally.

So why the random prices? Well, they seem random because there are many different factors that go into the qualification of a home insurance policy. Below are some of the things that can be used to qualify a home insurance policy.

* Amount of coverage: You may want to over-insure your home because you think prevention is better than cure, but you will overpay for coverage you don't need. The amount of coverage affects the price of all insurance companies. Make sure you have enough coverage, but don't overdo it either.

* Local Fire Protection: If you have a volunteer fire station 20 miles away, you will pay a little more for your home insurance due to increased risk. Many companies will not insure a home that only has a volunteer fire station nearby, limiting your options.

* Type of Construction: Whether you have a brick house or a stucco house, your insurance company needs to know. Your insurance company also wants to know what type of roof you have. Wood ceilings are not as desirable as concrete ceilings because they are slightly more flammable.

* Age of home: The older the home, the more likely you are to have a claim. Therefore, older houses will generally cost more to insure.

* Deductible amount: No matter who your insurance company is, the higher the deductible, the lower the premium. Be sure to compare similar deductibles when comparing policies.

* Discounts: Each insurance company will have discounts, but not all are the same and not all apply equally. One company can provide a 3% discount for a monitored alarm system, while another company will offer a 5% discount. Check with your agent to make sure you get all the discounts you deserve.

* Insurance score: Some companies will use what we like to call an "insurance score," which is based on your credit history. It is not the same FICO score that you use when you get a home loan, but it uses a lot of the same information.

* Claim history: Most people assume that their personal claim history is all that is taken into account when rating a policy, but that is not always the case. If you are buying a new home, claims made on that home by previous owners could affect your ability to obtain insurance through certain providers.

As you can see, there are many variables that go into the qualification of a home insurance policy. What makes it even more complicated is the fact that each insurance company will have different ways of applying different factors. Guessing prices can be a complicated business to say the least https://www.insurewithrichardson.com/

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Insurance score: Some companies will use what we like to call an "insurance score," which is based on your credit history.