Home insurance is an investment in peace of mind by letting you know you will have the funds to replace your house or belongings in the case of a natural disaster or another unfortunate event. However, you may wonder how providers come up with your premium costs—and if there is anything you can do to lower them. The guide below explains some of the factors that go into your monthly rate. 

What Affects Home Insurance Premiums?

1. Location

If you’re located in a flood zone or an area that gets hit with a lot of tornados, there is a greater risk of something unfortunate happening to your home—which, in turn, increases your premiums. A declining neighborhood with a high crime rate also increases the potential for problems. In the latter case, consider installing fencing or a security system for added safety—and for the possibility of savings on your insurance.

2. New Additions

Many people are surprised to find that new home additions raise their rates. Home insurance providers have to look at them as more space for issues to occur. Pools are an especially large red flag since they increase the potential for guest injuries. However, if you fence in that pool, that added security measure could help to mitigate costs somewhat.

3. Older Features

Dated piping, an older electrical system, and a weak foundation are all concerns for insurance providers as they’re more likely to fail. They may also inadvertently cause a fire or flood. Because of these red flags, they’ll institute a higher premium. Therefore, to save money on multiple fronts—your insurance and the eventual cost of repairs—consider upgrading your appliances and roofing system as they get older.

If you’re looking for a reliable home insurance company, Doris Watson Insurance Agency of Broken Arrow, OK, is your go-to resource. As affiliates of State Farm®, they can also help you find coverage for your car or health—with the possibility of discounts for bundling your services. Learn more about her products on her website or call (918) 251-4333 to schedule a consultation.