Risk is a big factor when determining how homeowners insurance is calculated. A safe home that has few risks will be lower to insure than a house that sits on a floodplain or is in a high crime area. These are some factors that are taken into consideration when determining how much you will pay in homeowners insurance:
Houses in areas where risks such as tornadoes or crime are common may have more expensive home insurance rates. Also, take a look into how far your home is from your local fire department. The further away your house is from emergency services, the higher your insurance may end up costing.
Material make up of your home
Houses built from brick and hard, dry substances are less expensive to insure compared to homes made of wood and other materials that are more flammable and easily damaged.
Age of the house
Older houses will run into problems more frequently compared to homes that are newly constructed. Older homes also tend to have higher rebuilding costs.
When your house is entirely destroyed, this is the amount it would take to get it to its previous condition. It is important to remember that this is not the same as what you paid for the property.
Your personal claims history
If you have never filed a homeowners insurance claim, you may qualify for discounts.
When you get a quote for homeowners insurance, most insurers will ask you if you have any dogs. Your four-legged companions may increase your insurance premiums if they fall into the bully breed category.
Insurance coverage selected
Your insurance costs will also increase depending on how much coverage you select. A basic homeowners insurance policy covers the main building and other structures like the garage, additional living expenses, personal property, liability and medical payments. Any additional endorsements like water back-up coverage, guaranteed replacement costs, identity fraud protection and personal injury protection will increase your insurance costs.