The cost of homeowner’s insurance depends on a great many variables. Some of these variables are mostly out of your control, while others you can manipulate to get the lowest homeowners insurance rates.
There are a few items that, though you do have control over them, you may be limited in that control. For instance, if your job takes you to a certain area, that area may be more expensive for homeowner’s insurance. The basic variables that determine what you will have to pay for homeowner’s insurance include the following.
- Age of home
- Cost of home
- Cost of other structures on property
- Cost of personal contents
- Location of home
- Safety features of home
- Type of home
- Your age (retirees pay less)
The biggest consideration, after the total cost of the home, is going to be the location of your home. The location of your home is important for a variety of reasons. When trying to assess the cost of homeowner’s insurance with respect to location, your insurer will consider the following.
- Crime rate
- Market value of homes in neighborhood
- Natural disasters (flooding, hurricane, earthquake, tornado)
- Proximity to fire station and fire hydrants
Also keep in mind that you do have some control. Shop around by researching various companies and getting online rate quotes. These quotes can help you lower the cost of homeowners insurance by hundreds of dollars per year.