Can You Negotiate Homeowners Insurance?

  1. 80 POINTS
    Joe Allegro
    Partner, Sitar Insurance Agency, Iselin, NJ
    No. Insurance rates are set by actuaries.  They are mathematical professionals who calculate the probability of an event occurring, and price their rates accordingly.  They do give credits for a reduction of risk (alarms, sprinklers, nearby fire hydrant...), but the number is not negotiable. Every company calculates their risks differently, and some may need to add a certain risk in their portfolio in order to diversify, or may prefer a certain type of risk, and therefore will be priced better for a certain policy, which is why your agent should shop your policy to multiple carriers to ensure you get the best rate.
    Answered on February 23, 2014
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