Many people believe companies calculate homeowners insurance rates based solely on a property’s value, but the truth is there are a variety of factors used to determine the cost of coverage. Understanding what these are can help you decide which policy provides the best deal for your needs. The professionals at Ebert Agency are committed to helping the residents of Foley, AL, find high-quality products at competitive rates. Below, they discuss some of the most common aspects insurers look at when deciding how much you should pay for homeowners insurance.

5 Elements That Influence Homeowners Insurance Rates

1. Location

Location has a significant effect on premiums. Providers will consider how far away the property is from a fire department, fire hydrant, and other water sources. They will also take into account the neighborhood’s crime rate and the likelihood of experiencing a natural disaster based on the region.

2. Home Characteristics

There are several characteristics about your home that will play a role in determining coverage costs. These include age, the building materials used during construction, and its current condition. Newer homes that are updated with the latest systems and technology are typically less expensive to insure.

3. Safety Features

Many insurance companies offer discounts for having certain safety features installed. Protective devices such as home security systems, fire extinguishers, smoke detectors, deadbolts, and sprinkler systems are likely to help reduce the risk of loss. Therefore, providers are willing to reward you for having them.

4. Coverage & Deductible

The type of coverage and the deductible you select also impact your homeowners insurance rates. The more coverage you have, the more you can expect your premium to be. In addition, a higher deductible will lower your premium, but it must be an amount you can afford to pay should you ever need to file a claim.

5. Claims History

All too often, homeowners don’t realize the more claims they file, the higher their policy rates will become. When providers see a history of frequent claims, they view it as a big risk and want to be compensated. On the other hand, they may offer a lower premium if you maintain a claim-free record.

Knowing how your homeowners insurance rate is calculated can be helpful during the shopping process. It will allow you to figure out if there are any discounts you may be eligible for or any steps you can take to reduce your costs. To find the right coverage for you, contact Ebert Agency at (251) 943-2281, or visit them online to request a quote.