5 Factors that Affect Your Homeowners Insurance Premiums

home-2095258_640House hunting can be quite the process but finally closing on the house you’ve always wanted makes the tedious process worth the while. Now that you have a home you should probably insure your investment. The following factors can affect the price of your homeowner’s insurance premium:

Home Features and Characteristics
The age of your home along with the type of structure, roof, wiring, garage and more can all affect the insurance premium. For example, older homes usually cost more to insure.

Location
We’ve heard it before, but it’s all about location, location, location. Your insurance premium and rate can be affected if you live close to a fire station, are often exposed to extreme weather conditions such as hurricanes and tornadoes or you live in a neighborhood that is more prone to crime and theft.

Protective Devices
While other items on this list tend to increase your premiums, the following can help lower them. Alarm systems, smoke and carbon dioxide detectors, fire extinguishers, sprinkler systems and deadbolt locks can lower your insurance costs.

Personal Factors
Such as smoking and credit score can affect your homeowner’s insurance costs as well. Usually smokers tend to pay more while a good credit history can lower the amount you pay for insurance.

Claim History
Just like car insurance, a history of claims means that you could pay a higher premium for your homeowner’s insurance coverage.

 

Here’s what to expect when looking at a typical homeowners insurance policy:

Your policy may differ in structure, but most policies contain the following sections:

  • Declaration Page

Typically, the first page within the policy contains summary information like the name and address of the insured, the dollar amount of coverage, description of insured property, cost of the insurance, name of the insurance company and their contact information.

  • Definitions

The definition page lists and explains the meanings of the various terms used within the policy.

  • Coverage

The coverage section explains and details the protection in your homeowners insurance policy for property such as house, structure and contents along with liability including bodily injury and/or property damage to others.

  • Exclusions

This section provides information and explanation of what is not covered under property and liability by your insurance policy.

  • Conditions

This section usually outlines each party’s responsibilities under the policy terms. The procedures to settle any losses, claims or disputes are detailed within this section.

  • Endorsements

Any and all amendments or attachments that alter the standard coverage provided by your policy can be found in this section. Some additional endorsements include flood and earthquake protection and require an additional premium.