Share:

While homeowners insurance is a necessary expense because it provides financial protection, coverage doesn’t have to be costly. If you want to reduce your premium and save money after buying a policy, you need to first understand how those premium rates are established. Here's a closer look at a few of the most common features that come into play. 

3 Factors That Affect Homeowners Insurance Premiums

1. Deductible 

As with other types of insurance, homeowners policies are available with a range of different deductibles, usually between $500 and $2,000. When you file a claim, you're responsible for covering this cost out of pocket before the coverage kicks in. Most companies offer lower rates for individuals who opt for higher deductibles because the provider ends up paying less when the customer files a claim. 

2. Location

homeowners insuranceWhere you live is a key component of an insurance quote because it determines your risk factors for natural disasters and property crime. Location also affects replacement value after an incident, which is the total amount the policy provides to rebuild a home. The costs of labor and materials are typically higher in metropolitan areas and suburbs, so properties in these communities need higher coverage. 

3. Structure's Age

Building materials become more susceptible to damage as they age, which increases the risk of filing a homeowners insurance claim. For that reason, rates tend to rise for homes over 30 years old with further increases each decade. However, the types of materials used in the building process can also influence insurance rates because of the differences in longevity. Additionally, updates and renovations affect the final costs because you might change the property value or decrease the likelihood of damage.
 

Keep your home protected without breaking the bank with the assistance of Superior Insurance in Durham County, NC. For over a decade, the dedicated insurance agents have proudly served the needs of residents across the Research Triangle region. As an independent agency, the team provides clients with a wider selection of coverage and rate options. Learn more about their homeowners insurance policies online, and request a quote today at (919) 224-8034.

tracking