After closing on a home, you’ll need to start protecting your investment. Homeowners insurance is an essential purchase for any new homeowner, as it covers the structure of your home and its contents, while also providing personal liability protection. However, the cost of your insurance policy can be influenced by many factors, which could raise your insurance costs without you realizing it.

5 Factors That Affect Homeowners Insurance

1. Your Home’s Replacement Cost

The replacement cost is how much an insurance company will have to pay to rebuild your house to its current state. This would be necessary in the event of a total loss due to fire or another disaster. The higher the replacement cost of your home, the more you'll pay for homeowners insurance.

2. Your Deductible Amount

The deductible is the amount you must contribute to a claim before your insurer pays the rest. If you pay more out-of-pocket for each claim, your premium will be lower.

3. Your Credit History

Believe it or not, there’s a relationship between credit use and claim filing. People who use credit cards responsibly are less likely to file claims than those with a history of charge-offs, late payments, or bankruptcy. If you have a lower credit score, you’ll pay more each month for homeowners insurance.

4. Your Dog’s Breed

Dogs have the potential to bite someone on your property, meaning they create more risk for your insurer. However, certain dog breeds are prone to causing more damage and liability, costing you more on your insurance. Among these are pit bulls, Dobermans, German shepherds, Akitas, chow chows, and Siberian huskies. If you have a dog that’s considered a high liability, you'll likely pay more for homeowners insurance.

5. Your Claims History

If you’ve filed many insurance claims in the past, you’re considered more likely to file another in the future. Therefore, someone who has experienced a house fire or burglary in the past will pay more for homeowners insurance than someone who has never filed a claim.

For invaluable assistance creating a homeowners insurance policy that’ll provide the protection you need, contact Superior Insurance in Durham, NC. They serve individuals and businesses in Raleigh, Chapel Hill, and Durham, and have built a reputation for exceptional customer service. They carry home, renters, business, and auto insurance, so they’re a one-stop coverage solution. Visit their website today to request a homeowners insurance quote.