Understanding the different factors that affect home insurance is vital. Shopping around for the lowest price can save you money and still provide you with the coverage that you need.
You can get an idea of the cost of home insurance in your region by looking at the website for your state's department of insurance. It will give you an idea of what home insurance is likely to cost in your area, but the rates may vary significantly from one insurer or another.
Your deductible
Like health insurance and car insurance, your home insurance deductible is an important part of the coverage you choose. 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. A low deductible increases your premium, whereas a high one can lower it.
Your zip code
Zip code can have a direct influence on the cost of home insurance. Your rates will be higher if you live in an area that's prone to theft. 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
If you add value to your property by remodeling or adding rooms, your house is less likely to suffer damage in an emergency. This will save you money. You can add a new bedroom or a kitchen to your home.
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.
Your quote will be affected by how often you file or make claims. Your insurance company is more likely to offer you a discount if you have had several small losses in the past.
Please read the fine print in your policy
Different companies will have different deductibles limits and coverage categories. 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.
The fine print may seem daunting, but is well worth the time because it helps to clarify what coverage your policy provides and what doesn't. 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. In addition to helping you understand the different options, they can also explain any discounts that are available to you.