List of taxes on Home InsuranceIf you live in USA you cannot save yourself from taxes. There are various different types of taxes on each and everything from smallest to biggest things has tax applied on them. In this scenario how insurance policies can remain exempt from these taxes? There are taxes on premium which you pay to insurance company. This tax is known as Insurance Premium Tax (IPT).
Although this tax is not collected directly from the insurance policy holder, but somehow its effect is on the policy holder. The insurance companies charge extra ordinary charges against this tax from the policy holder. They recover this amount from the pocket of insurance policy holder.


IPT is applicable to all types of insurance premiums whether general, home, life or auto. The standard rate of IPT is 5% to 6%. However this rate is higher on some products insurance like vehicle and home appliances. it as much as 20% on these items.
If government raises IPT the insurance companies raise their premiums and rates. The overall burden is transferred on the consumer. The insurance companies do not bear this expense in their shoulders.
But there are certain cases where consumers can save themselves from this IPT effect. This is not something illegal or illegitimate but it is just some research and knowing some unknown facts. Be honest when you fill insurance forms. There are certain things which are exempted from VAT and home insurance is one of them.

 

For more information visit Florida home insurance