Factors that Affect Your Premium

Companies may use a number of criteria to establish your individual premium. These include:

• The age and condition of your home. Older homes and homes in poor condition generally are more expensive to insure. In addition, companies may refuse to insure homes in poor condition. However, they can´t deny coverage solely because of a home's age or value.
• Your home's replacement cost. Since your policy will pay to rebuild your home if it is destroyed by a covered loss, premiums are more expensive for homes with a high replacement cost.
• The construction materials used in your home. Homes built primarily of brick are less expensive to insure than frame homes.
• Where you live. Premiums will likely be higher for homes in areas with a high frequency of storms, such as tornados or hailstorms, or with a high incidence of theft.
• Availability of local fire protection. Homes with access to good fire protection services get better rates. If you live in an area with limited fire protection, your rates will be higher.
• Your claims history. Companies will charge more if you've filed claims in the past. Before filing a claim, its a good idea to ask your agent or the company's underwriting department how it will affect your premium at renewal time. For less expensive losses, it may be cheaper in the long run to pay for repairs yourself rather than file a claim. This is especially true for repairs that wouldn't cost much more than the amount of your deductible.
• Your credit score. Companies may consider your credit score when deciding whether to sell you a policy and what to charge you. However, a company cannot refuse to sell you a policy or cancel or nonrenew your policy solely on the basis of your credit. Companies that use credit scoring must file their models with the Texas Department of Insurance.

Companies must file their underwriting guidelines with the Texas Department of Insurance and update them each time they make a change.

Discounts

Discounts can help you save money on your insurance. Companies may offer premium discounts if you take steps to reduce the chances of a loss. Each company sets the amount of the discounts if offers to its policyholders. Some of the more common discounts are listed below:

• » Impact-resistant roofs
• » Noncombustible roof
• » Marking personal property with an identifying number (inspection required)
• » Age of house (companies set own standards)
• » Premises in good condition (companies set own standards)
• » Good claims experience for three consecutive years
• » Other policies with same company or group
• » House insured to full replacement cost
• » Senior citizens discount
• » Burglar, fire, and smoke alarm systems
• » Automatic sprinkler systems
• » Fire extinguishers
• » Home security devices