There are many factors that affect homeowners insurance premiums and below is a list of the major ones.
1. Location
Where you live impacts the amount of premiums to be paid. Areas that are more prone to catastrophic events and natural disasters generally pay more to cover the risks, unlike areas with relatively no catastrophic occurrences.
Homeowners in cities and other densely populated areas also pay more due to higher risks than in sparsely populated areas.
2. The price of the home
Unlike a relatively cheaper home, a highly-priced house costs more premiums due to high-priced structures and contents. Building and repair costs may also increase the premiums paid on such a house.
3. Home’s age
The amount of premiums for vintage or old homes is higher than relatively newer homes because old homes require more maintenance than newer homes. Old homes may require frequent repairs and changes to structures that may rot easily, like wooden structures and plumbing.
4. Available security measures
Installations of security cameras, fences, and other security concerns may give the insured a discount.
5. Deductible amount
Higher deductible amounts reduce the cost of insurance. If a repair costs $2500 and your deductible amount is $500, the insurer will only pay the remaining amount. Consequently, if you have a deductible amount of $1500, the insurance cost would be $1000