4 Factors That Highly Affect the Cost of Home Insurance

The value of your home is one of the most important things that an insurance company considers before they can give you an estimate or evaluation in regard to your homeowner’s insurance coverage. Little do most homeowners know;there are factors that will affect the cost of your homeowner’s insurance.

Listed below are some of the most important factors that affect the cost of home insurance:

• The liability coverage – In regard to liability coverage, it is quite evident that the amount of liability coverage on your homeowner’s policy will also impinge on premiums. That said, liability insurance is a much required part of homeowners insurance policy because it goes over and beyond to protect your assets in the event that you are sued. Although the more limits of liability you buy, the higher your premiums will be, it is a great way to deal with quite a number of claims.

• The age and condition of your home or property – This is obviously the most important factor that affects homeowners insurance California. Looking at several options available in the market, it is clear that the newer the home is, the less it costs to insure and vice versa. For example, the roofing and plumbing or the electrical wiringsystems affect premiums. In fact, a home that is built primarily using wood is quite expensive to insure compared to a home that is constructed with bricks or stone.

This means that when your home is sturdy and more resistant, it is less expensive to insure. On the other hand, the larger your home is, the more likely it is that you will have to pay higher premiums.

• The location of your home – Believe it or not, the location of your home will have a major effect on what the homeowners insurance cost will be. If your area has a high claim rate, the cost of insurance will definitely be high while for the areas that have low claim rates, the homeowners insurance cost will also be low. On the other hand, insurance is also high in areas that are known to be hit by harsh weather conditions such as storms, floods and hurricanes.

• Your credit score – Moving on, your credit score also plays a significant part in determining the cost of your home. The higher your credit score, the lower your home insurance cost will be. By looking at the already established claims, you will realize that homeowners with low credit scores file more claims than those with high credit scores.

• Last but not least, claims and history also add up to the above mentioned factors. If you are a homeowner who has a history of filing claims, you are bound to pay higher rates compared toa homeowner who has little to no history of filing claims. One of the best ways to ensure that such scenarios are avoided at all costs is to be the bigger person and pay for small damages fromyourown pocket.