Your homeowners insurance policy provides an umbrella of protection that covers your most valuable possession, but it also shields you from liability losses and damages to your personal property. However, many homeowners aren't sure how their premiums are calculated, or what factors influence their monthly premiums. Understanding how carriers determine these rates can help you get the coverage you need at the best possible price.

4 Factors That Affect Homeowners Insurance Rates

1. Upgrades & Improvements

Adding onto or renovating your home will increase the value of your property, which means your existing policy may not be enough to compensate for damages. If you've completed extensive improvements to the property, review your homeowners insurance plan to ensure your investments are adequately protected.

2. Pools & Trampolines

Backyard entertainment equipment like pools and trampolines are known as “attractive nuisances,” which means you're liable for any injuries they cause—even if the individuals didn't have permission to use your property. Installing a fence and securing your property can help reduce this risk, and may even lower your insurance premiums.

3. The Age of Your Home

Weather and natural disasters cause more damage to older homes with aging siding and roofs. The materials used to build your home can also have a major impact on your premiums—for instance, houses with wooden shingles are more expensive to insure than those with metal roofs.

4. Home Security

Because your homeowners insurance policy offers coverage for theft and vandalism, crime rates in your area have a direct influence on your monthly premiums. However, many insurers offer significant discounts to homeowners who install new locks and a monitored home security system.

Mid-Alliance Insurance Associates, LLC, proudly provides a comprehensive range of products and coverage solutions to homeowners throughout the Lincoln, NE, area, with options tailored to fit your needs. Learn more about their homeowners insurance plans on their website or Facebook, or call (402) 421-7800 to request a quote today.