You bought a new house and are trying to get a handle on your monthly expenses, one of the most important being your homeowners insurance. Determining the average cost of homeowners insurance depends on a wide variety of factors. For instance, did you know that owning a specific breed of dog can impact your homeowners insurance cost?
Let’s take a look at some of the factors that determine how your homeowners insurance is calculated – and what you can expect.
1. Insurance and claims history
The following are some of the factors taken into account when determining your homeowners premium:
- Credit history
- Insurance score
- Gaps in coverage
- Amount of homeowners claims
- Frequency of homeowners claims
2. Qualities of your new house
Your premium also depends on the type of home you own, including:
- Age of the home – Older models may be more expensive to insure because they often aren’t updated to local building codes.
- Type of structure – The primary material used (such as brick or stone), as well as roof type (such as composite shingle or slate), are taken into consideration.
- Security and safety features – Having the latest alarm systems and smoke detectors installed could result in a lower premium. Other devices that could help reduce payments include deadbolt locks, fire extinguishers and sprinkler systems.
3. The location of your home
One of the biggest impacts on your homeowners insurance cost is where you live. If you reside in an area prone to hurricanes or earthquakes, for instance, you generally will need additional coverage – which will likely impact your rate.
In addition to your region, the physical location of your house matters too. Being close to a police or fire station are contributing factors, as well as living in a neighborhood that experiences a high number of burglaries.