As a home owner you always want the very best for your property. No doubt then when it comes to insurance, you always shop around to get the best home insurance. You talk to multiple insurers, reach out to different insurance brokers and even search on the internet to buy the best home insurance.
For you important factors to arrive at a decision are price, claims handling, reliability, ability to contact an agent when the need arises, and ease of obtaining a quote online, whether in person, or on phone.
In response you receive numerous Free Home Insurance Quotes out of which you select the very best.
Insurance score and what it means?
Looking at this scenario from the perspective of an insurance company, the situation is somewhat similar. The insurance company also does due diligence to assess the various prospects who are reaching out to it buy insurance, and takes a conscious decision to evaluate each prospect, analyze the risk profile associated with the prospect, previous history, claims filed and employment history.
The insurer also looks at the age and condition of their home. Looking at all these elements in totality, it prepares their insurance score that helps determine the insurance premium that the prospect will pay.
In other words, the better your insurance score, the lower premium you will pay. To get an idea of what your insurance score is, you can reach out to an insurance broker and see free home insurance quotes.
Factors that influence an insurance score:
Are you already having insurance?
If you already have insurance, it reflects on your character and intention and puts you in good light as a person who cares for and looks after his or her belongings. This is reassuring for the insurer as they feel that you will do your best to protect your home against risks and damage, namely:
– Will take care of routine maintenance.
– Will paint when necessary.
– Will repair the roof if it is leaking.
– Will keep the plumbing and electricity in working condition.
You get a positive score if you already have insurance and are seeking to renew your policy.
Has any insurer refused to insure your property?
This is an important factor, and just in case your existing insurer has refused to renew your home insurance policy; then the other insurer would definitely like to know the reason for refusal. Was it because they didn’t do business in your area, or was it due to the fact that you filed too many claims, or started a high risk business in your home?
If the answer is yes and due to a reason that is caused by you, then it will affect your score adversely.
Have you made a default on your premium payments?
If you have defaulted on your premium payments, whether intentionally or due to reasons beyond your control, then it is difficult to explain the circumstances to your insurer. In such a situation you are perceived as a person with a low score.
Disclosure of prior claims
If you have filed prior claims, then it is best to inform your insurer about them in the first instance. If you think you would get away with non-disclosure, then you are wrong as the claim can be tracked with the Home Insurance Tracking System (HITS) and this new find would be perceived in a negative sense.
History of prior claims on the property
A quick glance through the history of prior claims gives critical information to the insurer on risks associated with your property. For example, a sewer that is continuously blocked may have caused water backup claims. This impacts your score.
A poor credit score has a negative impact on your insurance score.
If you have been in and out of jobs, it reflects poorly on your loyalty to your job and work ethics. This also shows that you may not have enough money to pay premiums and if you are seeking free home insurance quotes, then your broker or insurer might not be very forthcoming.
Insurance score and free home insurance quotes
If you are seeking free home insurance quotes with an aim to buy the best home insurance, then it is essential that you first improve your insurance score as this will definitely improve your chances of getting really nice offers from brokers.