How Insurance Premiums Are Determined

Every individual has unique situations and circumstances that influence the decisions they make when selecting a policy. However, there are essentially five factors that can help determine what kind of insurance policy you may need and how much you should expect to pay for it.


You can purchase insurance to match the amount of risk you’re comfortable accepting. The dollar amount you’re willing to pay toward a covered loss — commonly referred to as a deductible — will determine the amount of your annual premium. Typically, you’ll pay less for your policy if you select a higher deductible.


Your prior insurance history can affect the types of insurance you are eligible to receive and the premiums set for them. Other examples of what can affect your premiums are:

  • Frequency of claims
  • Continuous coverage (few or no periods without insurance)


One of the factors used to price policies are the types of claims that have happened in your neighborhood. Things more specific to your home’s location, like how close you are to a fire hydrant and fire station, are also considered.


Those items that you use, enjoy, store and generally keep at home can be protected by residential insurance. The types and values of those things determine the kind and amount of Personal Property Coverage you may need.


No matter what kind of home you live in, insurance can help protect you. The coverage needs of a house, condominium, manufactured home or rental property differ greatly and each requires a different kind of policy.


Your best choice for insurance

The first right decision in protecting all of your assets is finding an insurance agent who understands YOU and your family. We pride ourselves in taking the time to discuss your needs to ensure that you don’t find a gap in coverage when you need it most…something that can’t always be done in 15 minutes and is too important to rush. Make sure you and your family are fully protected and call us at 407-977-5700 or email any time at

Learn more about what is and isn’t covered:
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