Seven Factors that Affect Your Homeowner’s Insurance Rates
Seven Factors that Affect Your Homeowner’s Insurance Rates
Those unfamiliar with how insurance rates are set may feel as if there are a few guys in a smoke-filled room rolling dice to determine premiums. Actually, it is quite the opposite. Insurance rates are based on complex formulas using a variety of factors. When it comes to homeowner’s insurance, here are seven factors that can affect your rates.
- Size of the home. Generally speaking, the larger a home, the more expensive it would be to replace it. It would make sense then, that a home with 3,600 square feet of living space would have a higher homeowner’s insurance premium than one with 1,600 square feet.
- Construction materials. How your home was constructed will have a significant impact on your rates. Some materials are more resistant to fire and wind, for example. Therefore homes constructed using concrete blocks or brick may be less expensive to insure than a pre-fabricated or stick-built home.
- The deductible. The deductible is the amount of money that you would pay out-of-pocket before policy proceeds begin to pay. The higher your deductible, the lower your homeowner’s insurance premium is likely to be.
- High-risk features. If your home has what are considered high-risk features, premiums will be more expensive. These higher-risk features would include items like a fireplace, wood-burning stove or pool. Rates may even be higher if you have a dog, especially one that may be classified as aggressive.
- Location. The location of a house can impact insurance costs. Homes near water, for example, can be more expensive to insure. If a house is located far from a fire station, it too may have higher premiums.
- If you have a home-based business.If you are operating a home-based business from your home and have not notified your insurance agent, you may be placing that business, your home and your financial future at risk. Your homeowner’s insurance premiums may rise slightly, but at least you’ll have needed coverage.
- Roof condition. Roofing is one of the single most expensive parts of a home to replace. It is also vulnerable to fire and the elements. This is why a roof in poor condition may cause homeowner’s insurance rates to soar.
We may not give much thought to our homeowner’s insurance policies, including how much they are costing us. If you haven’t looked at your policy in years, now may be the time for a no-obligation homeowner’s insurance policy review. Contact one of our independent agents for a review and price quote today.
Do you have questions about your insurance? Find an insurance agent near you with our Agent Finder
Search All Blogs
Search All Blogs
Read More Blogs
Vintage Years of Vision: Four Times Hollywood Hit Cinematic Gold
Like fine wines, certain years in film history stand out for their exceptional quality and the enduring impact of the movies they produced. This article explores four such landmark years, presented chronologically, that many cinephiles consider to be among the greatest in cinematic history.
Green Means Growth: How Environmental Responsibility Can Boost Your Business
It might seem like a secondary concern when facing immediate business challenges, but embracing environmentally friendly practices can actually be a powerful strategy for improving sales, attracting top talent, strengthening your brand, and even saving money. This article explores the tangible benefits of going green for your company’s bottom line and long-term success.
The Forgotten Beauty: Unearthing the Story of the Volkswagen Karmann Ghia
Beyond the iconic Beetle and the groovy Microbus, Volkswagen produced a surprisingly elegant and often overlooked sports car: the Karmann Ghia. This article explores the history, design, and enduring appeal of this “poor man’s sportscar” that has become a sought-after collectible.
Peace of Mind at Home: Building Your Essential Supply Stockpile
Recent global events have highlighted the importance of being prepared for the unexpected. This article outlines key non-perishable food items and essential household supplies that every homeowner should keep on hand to ensure comfort, security, and resilience during unforeseen circumstances.
Faded Glory: Remembering the Sports That Once Ruled Our World
Remember when these sports were huge? Take a trip down memory lane with harness racing, bowling, boxing, and poker, and explore their shift in popularity.
Shielding Your Dream: Essential Insurable Risks Every Small Business Faces
Protect your small business! Understand key insurable risks like liability, vandalism, theft, employee injuries, and business interruption, and how insurance can help.
Finding Your Financial Foundation: Understanding the Minimum Life Insurance You Need
What’s the minimum life insurance you really need? Learn about covering final expenses, debts, and providing immediate financial relief for your family.
The Century-Long Rumble: The Epic Rivalry Between Ford and Chevy
Relive the classic Ford vs. Chevy rivalry, from the Model T era to the Mustang vs. Camaro showdown and today’s truck dominance.
Living Large: Peeking at the United States’ Most Outlandishly Expensive Homes
Explore the incredible world of ultra-luxury real estate with a look at some of the most expensive homes recently sold in the United States.
Curious Origins: Unraveling the Stories Behind Everyday Phrases
Uncover the surprising stories behind everyday phrases like “holy Toledo,” “crocodile tears,” “jaywalking,” and more!