Two very similar homes side by side in a neighborhood may pay different amounts of home insurance Orange County premiums. There are seven reasons for differences in insurance costs. The first two deals with the property, the next three have to do with the insurance coverage purchased and the last two depend on the homeowner. Everyone wins when neighbors compare the cost of their homeowners insurance and discover ways to reduce these premiums.
Home insurance Orange County is based on the home. This includes the size of the dwelling, age of the house and materials used in its construction. An older home with a new roof, newer plumbing and upgraded wiring will be given a higher replacement value and cheaper insurance premiums as these maintenance items protect the home from water damage, fires and floods.
Insurance policies cover the building and personal belongings, any additional insurance needed, discounts and the amount of deductibles homeowners agree to pay. Personal property is a percentage of the house value and may not be adequate to cover belongings. Buying additional insurance covering collections like antiques, coins, guns or jewelry or extensive electronic systems like computers set up for gaming is necessary as standard policies have low limits on these items and will not cover the cost of repair or replacement. Homeowners with extensive assets may increase liability limits on home insurance Orange County to protect themselves. All insurance companies offer discounts with the most common being a 10% to 20% reduction in premium if the homeowners insurance is combined with another insurance policy like automobile, RV or boat. Installing a home security system protects personal property that is rewarded with cheaper premiums. Increasing the amount of the deductible from $250 or $500 to $1000, $2500 or $5000 saves money.
The last two ways homeowners save on home insurance Orange County is by keeping high credit scores and shopping for insurance. Insurance companies have discovered people with high credit scores have fewer claims and provide insurance to them at lower costs. Shopping for insurance is as simple as making a few telephone calls or filling out applications on the Internet and can save hundreds of dollars a year as expanding insurance companies attract new customers with low cost policies.
By understanding and evaluating the seven reasons neighbors pay different amounts of home insurance Orange County premiums, all homeowners can reduce their insurance costs. As insurance is based on the house including the size, age and construction, on the policy provisions, discounts, deductibles and credit scores of the holders, owners can make improvements or increase their credit rating to get cheaper insurance. The fastest way to reduce this expense and save money is by shopping for the best insurance policy at the lowest price.
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