Forgot Password ?

Homeowners insurance is an essential part of protecting your home and belongings. It’s important that you understand which factors affect the cost of homeowners insurance so that you can get the best coverage for your needs. We’ll explore six common factors that determine homeowners insurance estimates so you can make an informed decision when purchasing homeowners insurance. 

The Location of Your Home 

Where you live will have an effect on the cost of your homeowners insurance. Homes in areas that are prone to disasters such as flooding, earthquakes, or tornadoes may be more expensive to insure than homes located in a more temperate area. The crime rate of an area can also affect how much you pay for homeowners insurance—homes located in high-crime neighborhoods tend to be more expensive to insure. 

The Age and Condition of Your Home 

Homeowners insurance application with pen next to itOlder homes tend to cost more to insure because they are often less energy efficient and require more repairs than newer homes do. Additionally, if your home has been updated recently with new wiring or plumbing, it may be eligible for discounts on homeowners insurance estimates since these updates reduce the risk of hazards occurring.  

The Type of Home You Have 

The type of home you own can also affect the cost of your premiums in your homeowners insurance estimate; single-family homes typically cost less to insure than larger multi-family dwellings, such as duplexes or apartment buildings. Additionally, certain materials used for construction—such as brick or stucco—may be less expensive to insure than wood siding due to their fire resistance and durability. 

The Amount of Coverage Needed  

Having enough coverage is essential when it comes to protecting your home from unexpected disasters or accidents, but too much coverage can lead to higher premiums due to additional costs associated with providing extra protection. Make sure you have adequate coverage without overpaying by knowing exactly how much coverage you need before shopping around for homeowners insurance estimates. 

Your Credit Score 

Couple in new home unpackingYour credit score may also affect the amount you pay for homeowners insurance since it is indicative of how likely you are to file claims or default on payments. If you have low credit, some insurers may charge higher premiums while others may even deny coverage altogether; this is why it’s important to know your credit score prior to shopping around for homeowners insurance quotes.    

Your Claims History  

Finally, if you’ve made multiple claims on previous policies or if those claims were deemed fraudulent by insurers, then this could result in increased premiums moving forward as insurers will see you as a greater risk when providing new coverage options. Be sure that all information provided regarding any past claims is accurate and up-to-date so that there are no surprises when looking into potential homeowners insurance estimates.

When it comes down to it, understanding what affects the price tag on a policy is key when it comes time to shop around for homeowners insurance rates and packages that fit within budget constraints and meet specific needs at the same time. 

More Information at Home & Auto Resources

Do you want to know how to get the best homeowners insurance estimate? At Home & Auto Resources, we provide comprehensive information about homeowners insurance so you can make an educated decision when it comes to protecting your home. Visit our website today to get the information you need to make an informed homeowners insurance estimate decision!


Have a question we haven’t considered yet? Fill out our contact form and we’ll get back to you!