The average cost of home insurance can be affected by a variety of factors. These include the home's age, the amount of coverage for the dwelling, and the history of any claims. This article compares the costs of common home insurance policies. It may surprise you to discover that some companies charge higher than others.
The cost of standard homeowners insurance
There are many factors that influence the cost of standard homeowners insurance. One of these factors is the dwelling coverage limit. The higher the dwelling coverage limit, the more expensive the premiums will be. Insurers recommend that you get the minimum amount of coverage and then add on additional options. Although dwelling coverage limits are the most important aspect of homeowners insurance policies, premiums can also be affected by other factors.
Age of a Home
Because older homes are more likely to be damaged, the average cost of home insurance will increase. Older homes have a higher chance of having HVAC or fire damage. Older homes also require more maintenance. These factors can help you find the right home insurance policy for you.
Claims history
The frequency of your claims can affect your average home insurance cost. Insurance companies can keep claims on file up to three-years and track them from plan to policy. You may see claims from the previous owner on your claim history. Avoiding claims and mitigating damage before severe weather occurs can help you lower your insurance costs each year. Other factors that may affect the cost for your home insurance policy are the age and type your roof, proximity to a local fire department, and number of pets.
Location of a home
The location of a home can have a profound impact on home insurance rates. Whether you live near a beach, in a mountainous area, or in the middle of the city, your rates will be affected. You may also need to consider the impact of natural hazards and population on the coverage you get. Insurance companies consider the possibility of you having to file a claim on similar properties in your area.
Building codes
Your home's insurance costs can be greatly affected by the code you use. Upgrades to code can add up to $5 per square footage depending on the age or condition of the house. Your agent or licensed public adjuster can help you determine if your insurance policy covers code-related upgrades.
Cost of rebuilding your home
The cost to rebuild a home is determined by several factors. The square footage of the house is one factor. The cost of rebuilding a house will be higher for larger homes than for smaller ones.