Homeowners insurance gives you irreplaceable peace of mind during inclement weather and when you’re away. When securing a policy, it’s essential to understand what’s affecting the price. While you want to secure the best deal, you also want to know you’re getting the coverage you require. Here are several factors and ways you may be able to improve your rates.

What Impacts Homeowners Insurance Rates?

1. Location

Insurance carriers have to factor in how likely it is that you’ll experience home damages or theft. There’s a greater chance homeowners in flood zones or areas with high crime rates will file a claim. If you haven’t bought a house yet, look for properties near fire and police stations and in reputable areas. 

However, if you already own a home in a risky area, consider security features. A sump pump that prevents home flooding or yard drain could lower rates since flooding is less likely to happen. Adding a fence, alarm system, and high-grade door locks may also reduce rates.

2. Home Value & Condition

The more expensive your home is, the more expensive it is to repair. Premium finishes, like marble flooring and slate roofing, increase home value and the renovation or repair prices. Custom-built homes may also come with higher premiums because they require an experienced contractor to repair. The same goes for historic homes. 

These may have construction materials that are harder to find. There’s also a higher risk of outdated pipes or wiring breaking, which is why retrofitting a property is a good idea. Be mindful of additions as well. A swimming pool will raise rates because it increases the chances of an accident.

3. Policy

The more valuable your policy, the more expensive it will be. However, you obviously don’t want to reduce your coverage because all of the damage may not be covered following an incident if you’re underinsured. If you’re concerned about the monthly payment, ask your insurance agent about raising the deductible. 

This is the amount of money you’ll pay on repairs before the insurance carrier begins to contribute. It’s best if you’re in a low-risk area where you’re less likely to file a claim. Just stay on top of maintenance like tree-trimming and home inspections that reduce your chances of an incident.

The insurance team at Cundiff & Company Insurance Inc. will help you find comprehensive, affordable homeowners insurance. This local agency has served Somerset, KY, for 40 years and prides itself on creating custom packages for each client. They’re committed to educating patients on their policies, including ways to lower payments. Start learning about house insurance, auto policies, and more on their website, or request a free no-obligation quote by calling (606) 679-8379.