How Do Insurance Companies Decide How Much to Charge You in Premiums?

Many people are growing unhappy with the rising costs of their insurance coverage. This common complaint raises an interesting question: How exactly do insurance companies decide how much to charge their customers for their individual policies?

Listed below are some of the major factors considered for disaster and accident coverage:

• Where the property is located: Businesses in flood zone areas will obviously have to pay higher premiums than those in urban settings.
• Buildings that have a sprinkler system qualify for discounted rates.