Understanding the different factors that affect home insurance is vital. It is important to shop around for the most affordable policy.
Check the insurance department's website in your state to find out what is the average cost of homeowners insurance. This will give you a rough idea of the cost of home insurance in your region, but rates are likely to vary greatly from one company to the next, as each insurer weighs rating factors differently.
Your deductible
The deductible for your home insurance is just as important as the deductibles you choose for health and auto insurance. It will determine how much of your claim or issue, such as cracked windows or leaking pipe, you are responsible for paying out-of-pocket. Low deductibles will raise your premiums, while high deductibles can reduce them.
Your zip code
Your home's ZIP code will directly impact your insurance quote. You'll pay more for home insurance if your neighborhood is one that is susceptible to burglaries. Areas that are more likely than others to be affected by natural disasters like hurricanes or earthquakes will also cost more.
Local fire protection
If your neighborhood has a fire station and hydrant, you may qualify for lower insurance costs. The same goes for homes with safety features, such as a home security system and an alarm.
Home improvement projects
By adding value to your house through remodeling and/or adding extra rooms, you can reduce the risk of your house being damaged in a natural disaster. This can help save money on your insurance policy. For example, a new bathroom or kitchen can be included.
You may also see a difference in your rate based on what type of property you own, and the age. Older homes, for example, are more susceptible to damage from fires and flooding than newer homes.
How often you make claims or file them will also affect your quote. You will get a better discount from your insurer if you've made a few small claims over the years.
The fine print of your policy
You will find that the deductibles, coverage categories and limits in each company's home insurance policies are different. This is due to the fact that all insurance companies are trying to maximize profit by offering a range of coverage choices they hope will appeal most to customers.
It may be a bit tedious to read all the fine print but it's well worth it. This will help you understand exactly what your insurance policy covers and does not cover. It will help you determine if you want to include more specialized protection and endorsements on your policy in order for it to be better protected against certain perils.
Your agent can assist you. You can ask your agent to explain the various options and any discounts available to you.