If I had a nickel for every..... alright, maybe it's not that bad, but it's pretty bad. We get calls all the time wanting to discuss the price of insurance, and rightfully so. The funny part is that often times the first thing I hear is "why did my rate go up", when in fact their rate went down! The comment I hear even more however is "Why is my neighbor paying less for his insurance?" Great question!
Before we can clearly answer this question, it is important to understand how your insurance rate is calculated. We underwrite both you and the property, and no risks are the same, as much as it may seem. Some common underwriting factors that we see that can cause rate differences among two seemingly similar properties are:
- The year your home was built
- The year the roof was last updated
- How the home is titled
- How the home is used (primary, seasonal, rental, etc)
- Coverage
- Endorsements
- Discounts (burglar alarms, shutters, etc)
- Deductibles
- Multi policy discounts
- The company writing the insurance
- Claims history
Remember that the price you pay for your insurance is only one piece of the puzzle. You wouldn't call your car sales guy at Toyota and ask why your neighbor's Ferrari is more expensive, would you? Of course not! It is impossible for us to answer the "neighbor" questions without seeing the policy.
The best thing to do is to have a good relationship with your insurance agent and to check in with him or her from time to time to review your coverage and to discuss any other potential markets available. If you are in the market for a good agent, look no further, the agents at Galt Insurance Group have you covered. Call one of us today!
