As you shop around for home insurance, it’s likely you’re looking for the best price in addition to quality coverage. However, to maximize your savings, you must first understand how insurance companies calculate policy premiums. Many variables are taken into account when determining how much of a risk someone is to insure. While some of these considerations are beyond your control, several others can be modified to get you a better rate. Below are some of the most common factors insurers review when deciding how much you should pay for coverage.

4 Factors That Influence Home Insurance Rates 

1. Location 

Where your home is located can have a significant impact on your insurance premium. Those who live in neighborhoods with high crime rates tend to pay more for coverage. This is also the case for homeowners residing in areas prone to natural disasters. On the other hand, easy access to a fire station or a source of water can lower your rate. 

2. Safety & Security Features

Often, insurers will reward homeowners who take the time to make their property safer because this reduces the chance of filing an insurance claim. You may enjoy a lower premium for installing an alarm system, smoke and carbon monoxide detectors, fire extinguishers, sprinkler systems, and deadbolt locks. 

3. Age & Condition of Home 

One factor all insurance companies will pay attention to is the age and condition of your home. An older home that hasn’t been recently renovated will cost more to insure than a newer home with updated plumbing, wiring, and HVAC equipment. If your house is in poor condition, this will also be reflected in your premium payment.

4. Claims History 

Premiums are commonly affected by the number of claims a homeowner has made in the past. If you show a pattern of incidents that lead to you filing claims, your carrier will view you as a higher risk to insure. In turn, they will look to mitigate their risk by raising your rate. Conversely, the longer you go without submitting a claim, the less you’ll have to pay.

Knowing how home insurance rates are calculated will give you the opportunity to do what you can to cut your premium costs. With the assistance of an agent from Farm Bureau Insurance in Blountstown, FL, you can explore all the discounts you’re eligible for to ensure you don’t miss out on any savings. They will spend as much time as it takes to find you adequate coverage at an affordable price. Over the years, they have used their industry expertise to help numerous homeowners choose the proper protection for their most valuable asset. Call (850) 674-5471 to request a quote, or visit their website to learn more about the home insurance products they provide.