Why Are Home Insurance Premiums So High?

  1. 21750 POINTS
    Jim Winkler
    CEO/Owner, Winkler Financial Group, Houston, Texas
    That is a great question! Insurance premiums are set based on a couple of things: The companies need to cover costs and make a profit; The amount of coverage and risk involved in insuring you; and the statistical risk of a claim and costs to rebuild in your area. It is really advisable to find an independent agent (one not tied to one brand name), or to shop around to find the one that works best for you. If you would like some tips on how you can lower your premium amounts, please contact me, I'll happily share them with you. Thanks for asking!
    Answered on May 8, 2014
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  2. 14231 POINTS
    Tom Sheehan
    Agency Owner, The Thomas G Sheehan Agency, 27 Glen Road Sandy Hook, CT 06482
    I am not sure where you live, but that can certainly be one of many factors when companies are pricing their Homeowners' products.  Keep in mind that premiums reflect risk.  I'll give you an example.  For companies who are still offering Homeowners Insurance here in CT, it is likely that if your home is located down in areas that are closer to Long Island Sound, you will pay more than you would if you were located in the Litchfield hills.  Why?  Because of the increased risk caused by potential windstorms and Hurricanes toward the coast vs inland. There are a number of factors, I have illustrated just one.  Talk to your Insurance Professional about your policy and what discount options you might be able to enjoy that can help to manage costs for you.
    Answered on May 8, 2014
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