Plenty of varying factors may affect your homeowners’ insurance, and it’s good to understand them. The pricing for homeowners insurance may feel arbitrary or unclear, especially for first-time home buyers. It is easier to understand your premium quotes when you know what the insurance companies consider when rating those policies. Before you call for your next policy quote, knowing what factors affect your cost is essential.
Standard Homeowners Insurance Premium Factors
With most policies, core elements contribute to the policy premium.
Property Location
Your home insurance company considers the property’s location when calculating the premium. Homes in high-risk areas with higher crime rates or limited infrastructure access will have higher insurance premiums than those in lower-crime areas with easy access to emergency services.
Home Value
The value of your home affects the premium as well. The higher your home’s value, the more it would cost to repair or rebuild it. This results in higher premiums.
Your Credit
Every insurance company uses a credit-based risk structure to determine each policy’s financial risk level. Your credit history contributes to your premiums, with lower rates going to those with better credit scores and proven credit histories.
Your Prior Claims
Another critical element of homeowners’ insurance in Massachusetts and across the country is your claims history. You may have higher premiums if you have a history of filing costly claims, such as roof damage or water damage.
Many people are at least vaguely aware of these standard policy premium elements.
Lesser-Known Homeowners Insurance Policy Premium Factors
You may wonder what contributes to the cost of homeowners insurance beyond those standard factors. There are other elements you may need to think about.
Water Sources
Suppose your property is near a water source, whether a river or the ocean. It is inherently higher risk than inland properties. Flooding and water damage are costly, so you might pay a higher premium.
Your Pets
Most insurance companies ask about your pets when you buy a homeowners insurance policy. Dog breeds can affect your premiums because insurance companies consider the risk associated with each breed. Most companies have a list of high-risk breeds, and they rate policies accordingly.
Property Features
Any property with a swimming pool, trampoline, or swing set might attract children, especially if not properly fenced in. Your policy premium will consider access to those features. In addition, interior features, such as woodstoves, fireplaces, and whirlpool baths, also affect your premiums.
Home policies protect the structure, your belongings, and even some liability exposures with the proper coverage. Consider added security for at-risk elements to save money.
Getting Discounts on Your Homeowners Insurance
Along with the factors that affect the price you pay, there are options to reduce your costs. An active home security system with central monitoring often earns a home security discount. Installing impact windows in your home can protect against glass breakage and storm damage. Some insurance companies offer discounts for replacing your windows with impact glass, especially in hurricane-prone or severe weather areas. You can even save money on your homeowners’ insurance for metal roofing installations. Your insurance carrier can provide you with other discount opportunities.
About E.J. O’Neil Insurance Agency
Since 1898, E.J. O’Neil Insurance Agency has provided homeowners with reliable coverage and high-quality customer service. Today, we offer a variety of policies, including commercial, boat, automobile, homeowners, motorcycle and renters insurance. Quotes are free by phone or online request, and we can provide notary and other services at our location. We pride ourselves on caring for customers when they need it most, proving it with over $3.2 million in claims paid over 12 months. To find the right coverage for your need, call 413-594-4757 or visit us online.