Before you start shopping around for home insurance, it’s helpful to understand how providers calculate the quotes you’ll encounter. Insurance companies take several factors into consideration when determining the cost of coverage, identifying the risk associated with your property. For over three decades, the agents at CIS Insurance have been helping the residents of Dumas, TX, find high-quality products at the best rates possible. Below, they explain some of the most common elements that impact premiums.

What Influences Home Insurance Rates?

1. Amount & Type of Coverage

The amount and type of home insurance coverage you purchase will have a significant effect on your cost. The more protection you have for your property and belongings, the more you can expect to pay. Whether you choose replacement cost or the cash value for your payout in case of a disaster will influence your rate as well.

2. Location

Where you live is another factor home insurance companies consider carefully when calculating your premium. They will look at the crime rate in your neighborhood, the likelihood of a natural disaster, your distance from the nearest fire station and fire hydrant, and your proximity to the closest body of water. 

3. Age & Construction Materials

Newer homes often qualify for more insurance savings, as they have updated heating and cooling, plumbing, wiring, and roofing systems. Aging homes tend to be more susceptible to damages and increasing wear and tear that leads to deterioration. They also account for the materials your home was built with, as some hold up better, while others cost more to repair or replace.

4. Claims History

Even if you change insurance providers, your past claims history will play an integral role in how much you pay for your policy. This information will follow you wherever you live and no matter who you decide to buy coverage from. The more claims you’ve filed, the greater your risk to insurers, which is likely to result in higher rates.

If you wish to keep your home insurance as affordable as possible, it’s important to know what affects your premium. Whether you’re looking to buy a new house or reviewing your current policy, the caring team at CIS Insurance will help you find the best possible plan and qualifying discounts. Call (806) 935-6512 to request a quote, or send them a message online for more information.