Once you buy homeowners insurance, you are likely to be stuck with the same policy for at least one year. And, given how much the premium payments can add up in just a year, it’s important to compare quotes offered by different insurance companies before you make your purchase. Let’s take a look at some factors that can affect the quote you receive:
Age of your home
Older homes usually get higher insurance quotes since the various components in the home are likely to have degraded over time.
Type of materials used to build your home
Homes that are made of wood cost more to insure than home made of stone or brick, since wood is flammable.
Security additions
If you’ve made your home more secure by installing an alarm system, deadbolt locks, and smoke detectors, you’re likely to get a lower quote.
Location
If your home is in a region prone to natural disasters or if the area has a high crime rate, you’ll need to be prepared to pay more for insurance.
Credit score
Insurance companies may check your credit-based insurance score when deciding your premium. If you have a favorable credit score, you’ll be offered a lower quote and vice versa.
Pets
Since homeowners insurance also includes liability insurance, you will be charged a higher premium if you have a dog that is generally considered aggressive.
Your assets
If you own expensive jewelry, artwork, or other assets, you will likely need to purchase a rider that offers additional coverage for valuables. Purchasing a rider, however, will increase the cost of your policy.
Home improvement
If you renovated or upgraded a part of your home, like the kitchen or the deck, your insurance policy may cost more since the value of your home is likely to have increased.
Local fire protection
If your home is near a fire station, your insurance quote may be cheaper.
Previous claims
If you’ve filed multiple claims in a short span in the past, you may have to pay a higher premium.
Keep in mind that insurance providers don’t all consider the same factors when deciding quotes. So, the quotes you receive are likely to vary slightly from insurer to insurer.