Investing in a home is one of the most significant financial decisions most people will ever make. Homeowners’ insurance is essential to protect you from the economic impact of emergencies, from house fires to injuries incurred on your property. The price you pay for insurance is typically quite small compared to what you’d pay out of pocket to cover the financial losses of an accident or natural disaster. However, premiums on these policies can also be expensive. Here are a few factors that can affect the cost.

A Guide to Homeowners’ Insurance Premiums 

1. Location

Just as the location of your home affects the sale price, it influences homeowners’ insurance rates. Insurance companies are likely to charge more if you live in an area with a high crime rate or that is prone to natural disasters. Conversely, you might pay less if you live close to a fire or police station. The closer you are to these emergency services, the faster you can receive help in case of an emergency and mitigate losses. 

If your home is in a flood plain or near a primary fault line, the premiums might be higher. This is because your home is more prone to damage from natural disasters.

2. Home Age & Construction

Old houses can be less expensive up-front, and many have a particular charm that new construction doesn’t. However, various aspects of the home can degrade with age, increasing the likelihood of problems. If your home is of a certain age, insurance companies can deny coverage. Insurers also consider the style of the roof, since the roofing system can protect the house from wind or water damage, or increase the risk of these issues if it is in poor condition. Homes with gable or hip roofs tend to be the safest. Likewise, fortified dwellings, built following updated codes to protect the house from the elements, will be less expensive to insure. 

3. Personal Demographics

Certain aspects about you can affect your home insurance cost as well. These include credit score, marital status, age, and health. If one or more people in the household are smokers, this can significantly impact your insurance cost because smoking substantially increases the risk of a house fire. 

4. High-Risk Features

Certain features can pose a safety risk, increasing the likelihood that you might need to file a claim. These include swimming pools, hot tubs, and trampolines, all of which raise your liability risk. These features are considered attractive nuisances, meaning they may entice visitors or passersby to engage in potentially dangerous activities, which could lead to injury. 

If you need homeowners’ insurance for your new dwelling, turn to Barron Mutual Insurance Company. Since 1891, this local insurance company has protected residents of Barron County, WI, by offering a broad range of residential, farm, and light commercial insurance plans. Call (715) 537-5141 today to speak with a helpful team member to learn how they can help you, or visit the website to browse their full range of policy options.