Purchasing a home is an exciting event that you’ll always remember whether you’re a first-time homeowner or moving into a new house. From football watch-parties to birthday celebrations, think of all the new memories that will fill your new home for years to come. To keep the good times rolling, you will need homeowners insurance for peace-of-mind no matter what life throws your way. Homeowners insurance helps you get back on track after a crisis, like a natural disaster, home fire, or theft. There are many variables that homeowners insurance companies consider when creating your policy. Here are a few factors you should consider to help you find the best home insurance at the right price!
What Affects the Price of Home Insurance Rates?
1. Deductible Amount
Before your homeowners insurance company will pay toward a claim, you, the homeowner, are required to meet a deductible. The deductible amount that you choose when obtaining a homeowners insurance policy significantly impacts the amount of your monthly premium. Opting for a higher deductible may seem more expensive, but this can actually save you money in the long run if you stay claim free. A good rule of thumb is to remember that the higher your deductible, the lower your premium will be, ultimately saving you money on your home insurance.
2. Amount of Homeowners Coverage
Homeowners insurance can include multiple types of coverages. The amount of coverage that you choose will influence the cost of your homeowners insurance policy. To protect the structure of your home and your personal belongings inside, consider the following types of homeowners insurance coverage to best meet your personal needs and budget:
- Dwelling coverage to repair or replace your home following a covered peril, like fire, hail, wind, or lightning damages
- Personal property coverage up to limits of your choosing
- Coverage for other structures, such as sheds and pools up to the limits of your choosing
- Loss of use coverage to help pay for necessary expenses during the repair of your home if deemed uninhabitable
- Medical expenses coverage to help cover medical costs following an accident on your personal property
3. Marital Status
Did you know that married couples are seen as less of a risk than single homeowners to insurance companies? If you’ve tied the knot, you could be at an advantage when signing your homeowners insurance policy. Over time, married homeowners tend to file fewer claims and are considered to be responsible and mature by homeowners insurance companies. If you are married, chances are you could get a break on your homeowners insurance premium!
4. Age and Condition of the Home
The age of your home and the condition it is in are significant factors when homeowners insurance companies create your policy. When looking for a new home, think about what it would cost to rebuild the house following a disaster. Older homes built with materials like elaborate moldings and plaster walls are often costlier to replace, which is why homeowners insurance companies view them as higher risks than newer homes, therefore raising your premium.
Also, the construction of the home will weigh into your homeowners insurance policy rates. Sturdier constructions, like brick homes, are less of a liability than houses made from flammable materials, like wood, and tend to have cheaper premiums.
5. Proximity to a Body of Water
Living near a lake or river can bring a sense of serenity to your life, but homes that are located near water usually have higher homeowners insurance premiums due to flooding risks. But keep in mind that flood insurance is not included in homeowners insurance policies and will need to be purchased separately. This also applies to hurricanes. Your homeowners insurance company may require a separate deductible for hurricanes or require an additional policy to cover potential hurricane damage – a wise investment for Louisiana and coastal Texas residents!
6. Credit/Insurance Score
In Louisiana and Texas, many homeowners insurance companies consider your credit history or your credit cased insurance score when creating homeowners insurance policies. Every insurance company has its own method for assessing how homeowners’ credit scores will affect their homeowners insurance policies, but credit scores typically play a role in the overall cost. Keep in mind that your payment history and any existing debt can affect the price of your homeowners insurance.
7. Neighborhood Crime Rate
Home insurance companies consider location when creating your policy, because living in dangerous neighborhoods can result in more crime-related homeowners insurance claims, like theft and vandalism. Try to house hunt in a safe location, like near a fire station, to keep your premium down. Also, keeping your home safe with a security system, smoke detectors, upgraded doors and locks, and motion sensing outdoor lights will also help you stay as safe as possible in your new home-sweet-home.
There are many variables to consider when shopping for homeowners insurance for a new house or when changing your policy for your current home. ABC Insurance Agencies is here to help you save as much money as possible on your homeowners insurance by comparing rates from multiple homeowners insurance companies to find you the right blend of coverage and price. If you’re looking for a new home or want to save money on your current homeowners insurance policy, make sure to call 800-708-0123, click, or visit a friendly ABC Insurance agent near you to protect your biggest asset with affordable homeowners insurance.
The information provided in this blog is designed to give helpful advice on the topic discussed. It is not intended to provide legal or any other type of advice and is not meant to be a thorough discussion of every issue that a person should consider or may encounter. ABC is not responsible or liable for the availability of links to websites or resources, or for any content, advertising, products, services or other materials on or available through these websites or resources or your reliance thereon. Any references to third party rates or products are subject to change without notice. Trademarks are property of their respective owners. ABC Insurance Agencies-members of the National General Insurance Group, Winston-Salem, NC.