One of the secondary costs of owning a home is the price of homeowners insurance to guard your investment against damage, theft, and liability. The amount you pay depends on a number of factors, including personal information and the location of the home. To help you understand how your premium is determined, Wilson Insurance Agency in Dalton, GA, reveals the most important factors that affect rates.

5 Aspects That Help Determine Your Homeowners Insurance Rates

1. The Replacement Cost of the Home

The more risk your insurer faces, the more they must charge you to cover that risk. Thus, the more it would cost to replace your home if it were damaged or destroyed, the more you'll pay to insure it.

2. Marital Status

Insurers have found a correlation between marital status and reduced risk. Because of this, they charge single people more for the same property than they do a married couple.

3. Credit History

If you have a poor credit history or numerous dings on your credit report, you'll likely pay for it when buying a house. Not only will a lender charge a higher interest rate for a loan, but the insurance company will charge you more for homeowners insurance.

4. Location

If you're located near a body of water, you may have to pay more because of the risk of flooding, and your insurer may require a separate deductible for hurricane damage. However, if you live near a fire or police station, you may receive a discount because the proximity of first responders tends to reduce the risk of fire, vandalism, or break-ins.

5. Other Risk Factors

If you have other risk factors, you may be charged an additional amount to offset the risk. These include an on-site swimming pool, a trampoline in your yard, or a large or "aggressive" breed dog.

There are a number of factors that determine the price you pay for homeowners insurance coverage, but the precise algorithm used varies by insurer. To see if you can lower your rates, contact Wilson Insurance Agency in Dalton, GA. They also specialize in auto, motorcycle, and boat insurance and have been serving Whitfield County since 1969. Visit their Facebook page to view a map and office hours, or call (706) 278-0549 to request a quote. You can also visit them online for more about the company.