Factors that Affect Homeowners Insurance Rates

Homeowners insurance rates are impacted by a variety of factors, but the details can vary based on the situation and the insurance provider. Although the specifics can vary slightly, there are some common factors that generally impact the rates on your policy.

Disasters in the Area

When a particular area has a high risk of a specific disaster, like earthquakes or fires, you can expect a higher rate. The risk associated with the location will always have an impact on the rates because it means that you are more likely to make a claim as a result of a particular situation.

Although insurance policies will not usually refuse to cover certain risks, like fire damage, they may charge more for the protection. The exact risk and the specific location of the house will contribute to the options that are available and the impact on your rates.

Historical Data

Your credit history and your previous claim’s history if you owned a home at a different time will impact your rates. It can have a positive or negative impact, depending on the current credit score and the details of your historical data.

Risks in the House

When there are certain risks in and around your property, you can expect a higher rate. A swimming pool, a trampoline or a swing set in the backyard can have an impact on your rates. A house with stairs may have a higher rate than a house without stairs. Liability risks can vary, so the details regarding your options will depend on the situation.

There are several factors that will have an impact on your homeowners insurance rates. Recognizing the common reasons that your rates may increase or decrease can help you get the best prices. To learn more, contact us to talk to an agent.