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Homeowners’ insurance rates differ for everyone. Your premium rates are calculated based on a number of variables, from the level of risk facing your home to how old your fixtures are. Understanding these factors allows you to get the best possible insurance rates by making the right decisions. Below are five of the most important factors impacting your rates.

What Determines Your Homeowners’ Insurance Rate?

1. Deductible Amount

The deductible is the amount you must pay out of pocket before your insurance coverage kicks in. The higher your deductible, the lower your monthly premiums will be. If you choose a higher deductible, make sure you have enough money set aside to cover it.

2. Swimming Pool Installation

homeowners insuranceSwimming pools are referred to as attractive nuisances by insurance companies. Because they increase personal risk, you’ll likely need to increase liability coverage as well. You may also be interested in an umbrella policy, which goes beyond the limits of standard home insurance to cover additional assets, such as pools and trampolines.

3. Home Business

While standard home policies may provide some coverage for home-business equipment, it may fall short in terms of coverage amounts. If so, you may want to purchase a business owner’s policy, which also provides liability protection for clients or customers visiting your home. 

4. Type of Pet

Certain breeds of dogs are also considered high risk. For example, some policies exclude American pit bulls or Rottweilers due to their reputation for being aggressive. If you plan on bringing a new pet into your home, talk with your insurance agent first. 

5. Renovation

Home insurance rates are also based on square footage. That means if you expand your home, you’ll also need to expand your insurance coverage. That way you can rest assured that you’ll be protected against any damage that occurs anywhere in your home. 

 

 

You want an insurance agency that offers quality services all the time, whether you’re buying a homeowners’ insurance policy or filing a claim. Crothers Insurance Agency of Rising Sun, MD, offers more than eight decades of experience, and it shows in the quality of its service. Boasting strong working relationships with multiple carriers, this family-owned and operated company can help you find affordable insurance products, including life, auto, and commercial insurance. Call (410) 658-5200 to get started on your quote, or visit them online for more great insurance tips. 

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