How Do Texas Home Insurance Companies Decide What To Charge?

Insurance companies use a process called underwriting to decide whether to sell you a policy and how much to charge you. The amount you pay for insurance is called a premium. Each company’s underwriting rules are different. This means one company might be willing to sell you a policy, even if another company isn’t. It also means that different companies charge different rates.

Most companies consider these things when deciding on your premium:

  • Your home’s age and condition. Companies can’t turn you down just because of your home’s age or value, but they can charge you more.
  • Your home’s replacement cost. Houses with higher replacement costs have higher premiums.
  • Construction materials. Premiums are higher for houses built completely of wood. They’re lower for houses built of brick or stone.
  • Where you live. Premiums are higher in areas that have more storms or crime.
  • Availability of local fire protection. Premiums are lower for houses that are close to fire stations.
  • Your claims history. Your premiums might be higher if you’ve had claims in the past.
  • Your credit score. Some companies use your credit score to decide what to charge you. Your premiums will be lower if you have good credit.

Contact Us

Freedom Insurance Group
3861 Long Prairie Rd Ste 110
Flower Mound, TX 75028
Phone: (972) 798-3769

BUSINESS HOURS

M-F: 8:30 am - 6:00 pm
SAT: 10:00 am- 2:00 pm
SUN: closed

SEND US A MESSAGE