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Hazel Said:

Home insurance how does it work?

We Answered:

Home insurance rates are basically made up from the following: Ammount of coverage, type of home to be insured, location of home, claims history, prior insurance, various discounts, what deductible is chosen and your Insurance and Financial Stability (think credit).

Claims frequency in an area is taken into account but not to the degree where a company will differentiate rates on a street by street basis. A wonderfull example of claims frequency making rates higher is a coastal, hurricane prone area vs a town 150 miles inland.

The ammount of coverage is kind of a no brainer, a million dollars in coverage will cost more than a hundred thousand dollar home to insure. Similarly some homes are constructed differently and therefore are cheaper or more expensive to insure.

Not having prior insurance is probably driving your rate upwards and also not qualifying you for other discounts (such as a claim free discount which had you had insurance you may have qualified for if you had no claims). Further, if you've had several claims in the past you obviously be rated higher since you have a tendency to file claims (valid or otherwise).

Also if you have a lower deductible you will have a higher premium and if you have high deductible it will lower your premium.

Lastly, insurance companies do rely on an estimate of your insurance and financial stability into account while rating your policy.

Your best bet will be to sit down with an agent and ask him why your quote seems high.

Hope this helps some.

Leon Said:

Saga charge me £150 for home insurance. An on-line quote from Nationwide is less than half of this...?

We Answered:

Nationwide insurance is pretty good, and I and family members have had it in the past.

You can always call them up on their freephone 0800 30 20 10, to get any queries answered, to ensure that you've got the right level of cover. Also, ensure you got a quote online, rather than in a branch, as they have a 30% discount going right now if you buy buildings and contents insurance together.

http://www.nationwide.co.uk

Good luck

Calvin Said:

Why home insurance companies are sensitive to lapses in the insurance?

We Answered:

Insurance companies are wary of lapses in any kind of insurance policies. In your case it just happened to be home insurance.

The single most feared factor in the insurance business is not hurricanes, not bush-fires, not wars, not meteor strikes but what's known as 'moral hazard'. Moral hazard is, in simple terms, lack of inhibition in preferring a claim under less than above-the-board circumstances.

For example, if your camera is insured for home use only, you cannot make a claim if the insured camera suffers damage during a jungle safari. Most of us, being honest persons, would not even want to claim under such circs. However, since, as a rule it takes all kinds to make this world, there exist individuals who would make a claim as if the damage occurred at home. Such individuals are considered to be 'moral hazards'.

Coming back to your original question, insurance companies know from empirical evidence that the incidence of moral hazard is greater - much greater - in those cases where there's a break iin coverage. It's likely that the insured is trying to renew the policy after a loss has occurred.

You need to provide evidence to the insurance company that you did not intend to let the policy lapse. That it lapsed, is a fortuitous happenning (please note the wording - underwriters love such language) and not a deliberate omission. 'I do not want to be penalised for something over which I had no control' is the line you need to take. You could strike lucky with this line.

Cindy Said:

Home insurance?

We Answered:

OK, this is plain old life insurance.

Your best bet is to go to the guy that writes the house insurance, and get quotes for life insurance. YOu probably want term, as eventually that mortgage is going to get paid off, anyway, and then the "goal" disappears.

Leon Said:

Shopping for Car and Home insurance, which company is the best, o the fair one?

We Answered:

Try this site

http://ginsurance.notlong.com

here you can get quotes from different companies in Idaho , for home and auto.