Did you know that there are many factors that can significantly impact and affect your homeowners’ insurance costs?
It’s a known fact that every homeowner should invest in home insurance. It can cover your property and belongings and even protect you from liability in some situations. Even if you were willing to take on these risks, mortgage lenders typically require you to get it. But a home insurance policy isn’t a one-size-fits-all type of deal. There are many factors that impact the cost of home insurance.
Learn about five factors that can affect how much you pay for home insurance below.
5 Factors That Affect the Cost of Homeowners’ Insurance
Here are just some of the factors that affect how much your homeowners’ insurance policy costs:
- Location, Location, Location — Where you live is one of the biggest factors determining how much you’ll pay for your policy. Some homes are built in higher-risk areas, such as in Tornado Alley, near a fault line, or in areas that experience a lot of hurricanes and tropical storms.
To mitigate the costs of these natural disasters, insurance companies charge homeowners higher rates that live in areas prone to these types of disasters. Additionally, local factors within each city can also affect the cost of home insurance. If your house is located near a fire department, it could be lower or higher if you live in a high-crime area.
- Home Security and Other Safety Features — If your home is equipped with a home security system and other safety features, your insurance company may reward you with some sort of a discount.
- How Old Your Home Is — If your property is older, your insurance premiums may be higher. Older houses often have features or require materials that are more expensive to replace, like ornate trim or original hardwood flooring. Another reason it can be more expensive to insure an older home is because the electrical system or plumbing could be outdated and is viewed as a higher risk.
- Bundling Insurance — You may be able to get a discount on your insurance if you purchase multiple types of policies together. Look into buying your automobile, health, and home insurance from the same company, if you can.
- The Price of Your Home and Cost to Rebuild — More expensive homes generally cost more to insure since they are typically more to rebuild or repair if your home is damaged by a covered event. These costs depend on where you live, the local construction costs, and how big your house is.
Do You Need Homeowners’ Insurance? Contact Bear River Mutual Insurance Now!
Owning a property is a huge investment, one that needs to be protected! Home insurance is critical because it gives you and your family a financial security net and peace of mind. Our professionals are dedicated to finding the best policy for your specific needs, all within your budget. If you live in Salt Lake City, Provo, Orem, or a surrounding Utah city, contact us to get your fast and free quote.