Home Insurance Rates
All homeowners insurance policies are meant to provide protection for your house. However, not all home insurance policies are built the same, which means that they come at different prices. There are many factors that help to determine your homeowners insurance premium, including:
- Cost to rebuild your house – while many people think that their home insurance should be enough to cover the market value of their home, it should actually be based off of what it would cost if your house was completely destroyed. This cost includes different factors, including debris removal, construction costs, and labor.
- Building materials – what your home is made out of is a large determining factor of your home insurance. Hard, dry substances such as stone and brick, come with lower home insurance rates since they are less prone to damage than flammable, softer materials like wood.
- Age – older homes tend to be full of features that are made out of degrading or interior materials that can lead to issues. Many older homes also have unique architectural features that are expensive to replace, which is why more recent homes tend to have lower premiums.
- Fire protection – your insurance company will consider how close the nearest fire station is, as well as if you are close to a source of water. The more fire protection your home has, the more you can save since your home is less likely to be a total loss after a fire.
- Claims history – both your personal claims history and the claims history in your area will be taken into consideration when buying a house. The higher the claims history, the more you should expect to pay for your premiums.