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When you are planning to buy a home owner insurance policy, you certainly should find out some information about what home owner insurance is、what it does, and how much it costs. Get the best home owner insurance rate is always your goal. Here is some tips about home owner insurance rate. Just keep in mind that it may differ from state to state.  

Try independent agents if you want to compare companies as many as possible about home owner insurance rates.. But remember the cheaper the policy, the less the coverage. According to the risk situation of your home, you may be placed into several risk categories, such as Preferred、standard, and non-standard. Different categories have different rates, check with the insurance company that you are not placed inappropriately, to insure you will not been charged of higher rate.

Let’s have a look at an agent, Mississippi Insurance Department (MID). MID collects、researches, and supplies insurance information, and it is independent. In 2003, MID’s data from ten insurance companies, including Alfa Insurance Co. and Allstate Insurance Co., etc, indicated that the average annual home owner insurance rate (for a frame construction house、standard HO-3 form、$250 Deductible、$80,000 Risk/$100,000 Liability/$1,000 Medical coverage) was $1048 (rate of brick construction was roughly 10 percent cheaper).

Generally speaking, there are several factors influence your home insurance rate. For example, buying a multi-policy, which means a combination of your home insurance and car insurance or other insurance in the same company, is less expensive than buying several single policies one by one. A combo policy can usually give you a discount more than 10 percent. Further more, you’d better be clear that a replacement cost policy charges more than an actual cash value policy. Still, don’t forget to choose a reasonable deductible; it also affects your home owner insurance rate. Considering about home owners do not claims frequently, a high deductible is recommended.

Meanwhile, you’d better investigate carefully about the claims-paying ability rating of those insurance companies from which you are going to buy your policy. Claims-paying ability rating is a very important indicator to show to what an extent the insurance company is able to pay back when you claim. That’s a financial strength factor. Choose financial strong companies may raise your insurance rate, with higher credibility.

Home owner insurance customers should realize that home insurance rates, as well as auto insurance rate and others, are different among states over America. For example,   the average home owner insurance premium in Texas was $1242, which was about 60% higher than that was in Florida according to National Association of Insurance Commissioners’ report in 2002. That difference was significant. And some other information indicates that the level of home owner insurance rates had relationship with national inflation rate during the past several years in the United States. Data from Consumer Federation of America (CFA) shows home owner insurance rates rose up by 7 percent in average in 2001, and 13 percent in the follow year.

In America, insurance rate is determined not only by insurance companies’ and customers’ bargain, government regulation plays a role. All insurance rates should be authorized by state’s government before insurance companies can sell. Contiguous states may have similar home insurance rates, partly because of their geography and climate condition.