You bought a new house and are trying to adapt to your new monthly expenses, which include, among the most important, the cost of your home insurance. Determining the average cost of home insurance depends on a wide variety of factors. For example, did you know that owning a dog of a specific breed can affect the cost of your home insurance?
Let’s look at some of the factors that determine how your home insurance is calculated so you know what you’re up against.
1. Insurance and claim history
The following are some of the factors that are taken into account when determining the premium of your home insurance:
- Credit history
- Insurance score
- Gaps in coverage
- Number of claims of homeowners
- Frequency of claims of homeowners
2. Features of your new home
Your premium also depends on the type of home you have, which includes:
Antiquity of the house: older models may require a more expensive insurance because that type of houses are usually not updated according to local building codes.
Type of structure: the main material used (such as bricks or stone) and the type of roof (such as a composite or flagstone tile) are taken into account.
Security and protection features: having the latest alarm systems and smoke detectors installed could allow you the option of having a lower premium. Other devices that could help reduce payments include locks with pin, fire extinguishers and sprinkler systems.
3. The location of your house
One of the factors that most affect the cost of your home insurance is the place where you live. If you live in an area prone to hurricanes or earthquakes, for example, you will need additional coverage, which is very likely to affect your premium.
In addition to the region in which you live, the location of your house is also a determining factor. Being close to a police station or fire station is one of the determining factors, as is living in a neighborhood where there is a high rate of robberies
Remember that a reliable home insurance should not squeeze your budget. There are many savings opportunities if, for example, you combine your auto and home insurance policies.