- How can I save money on homeowners insurance?
- October 18, 2010
In October 2010, J.D. Power and Associates released a study that found customers with homeowners insurance declined to a five-year low. According to the study, this dissatisfaction stemmed largely from increasingly poor policy offerings and substandard customer service.
But first, to borrow a phrase, consumers must make sure their own house is in order if they hope to field ideal homeowners insurance offers.
Tim Sheppard, an Erie Insurance agent in Peoria, Ill., says there are several factors taken into account when insurance agents are determining your offer.
First, agents collect personal information such as your credit history and any recent losses claimed to help determine if you are even eligible for homeowners insurance. If so, you are issued an insurance score, a credit-based points system used by companies to assess risk. Each company is different with tiers ranging from 1-30 to 1-300, but the better your insurance score is, the lower your tier level will be.
Secondly, your house itself is evaluated on four criteria. Agents will assess the age, working condition and installation quality of the plumbing, furnace, electrical wiring, and roof.
It is illegal for companies to “red-line”, i.e., discriminate against a homeowner on the basis of a “good” or “bad” neighborhood. That says territories have their own rates based on past history.Pages: 1 2
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