Rates

We all want to get the most bang for our buck, no matter what we’re buying. Below you’ll find some factors that can affect how much you’ll pay for homeowners insurance. Pay attention and you just might save some money on your home insurance policy!Factors that Affect Your Home Insurance PremiumGet the facts. Start by gathering as much information as you can. Find out what kind of building materials were used in your home. What is the age of the wiring, plumbing and other systems? All of this can effect your home insurance premium. In parts of the country that are susceptible to earthquakes, a masonry home could be a liability, but in areas that are more prone to fires, a masonry home could be an asset.Geography. Where you live effects your home insurance premium. You will pay more for homeowners insurance if you live in an area prone to natural disasters such as hurricanes. According to the Insurance Information Institute, the states paying the most insurance in recent years are Texas, Louisiana and Florida.

Your neighborhood can also affect your homeowners insurance policy. For example, being close to a fire department may lower your premium. Living in a high crime area will probably raise it.Is Enough Enough? Many homeowners are under insured. They have not bought enough insurance to cover the replacement value of their home. Many are over insured because they calculated their insurance needs by including the value of the land. Make sure you’re adequately insured for the rates you pay.Personal Articles Floater. You may need to add a personal articles floater to your standard homeowners insurance policy if you have valuable items that exceed your policy limits. Protect Your Financial Assets. Increased liability coverage is especially important for pool owners. Other injurious items such as trampolines can drive your insurance up by 10% or more.Consider Your Comfort Level. To some extent, you can determine your deductible level. A higher deductible can significantly lower your monthly premiums. However, you may feel more comfortable paying higher rates just in case disaster strikes. Your best bet is to choose the highest deductible you can afford. But remember, the downside to this is that smaller claims such as broken windows will have to be covered by you, the homeowner. Embrace Preventive Maintenance. Making repeated claims for minor problems will raise your premium. Consider implementing a regular maintenance schedule for your home. Repairing small problems in a timely manner will help you avoid big losses down the road.Review and Compare Policies Regularly. It’s a good idea to review your homeowners insurance policy regularly and compare it to other policies. As you review your existing policy, you should note any changes to the property that could lower your premium. For example, if you have paid off your mortgage or removed the trampoline and you can provide proof of these changes, your insurance company will lower your premium. Changes in your neighborhood can also reduce rates. For example, if a fire hall has been built next door to you, this will lower your premium.Pay Off Your Mortgage. If you pay off your mortgage, you will likely see your home insurance premium drop because insurance companies figure that once you own a property outright you’ll take better care of it.Allowable Discounts. When you start making calls to find the best home insurance coverage, you should know what kinds of discounts you are entitled to. Home security systems and dead bolts will also help you save on your insurance. Here’s a list of common discounts: