Factors That Affect Your Homeowners Insurance Premium
Homeowners insurance is a necessity for anyone who owns a home, whether it is their primary residence or a rental property. There are two main factors that determine how much you'll pay in homeowners insurance.
Location
Where your home is located plays a big role in how much you'll pay in premiums. Homes that are in rural, sparsely populated areas are not easily accessible by police or the fire department. Some homes may be located in an area with high burglary rates. Is your home surrounded by dry brush in an area plagued by wildfires? Even certain states with high loss claims could affect how much you pay.
Construction
The way your home is built will have much to do with how your premiums are calculated. Older homes may not be up to date on the latest safety features and may also be more expensive to repair. Does your home have the latest safety features such as fire sprinklers? Fire-resistant building materials, upgraded electricity, heating and modern plumbing systems are desirable features that can save you money on your homeowners insurance.
Sources
- Did You Say Discounts? Retrieved May 29, 2008, from http://www.smartmoney.com/insurance/home/index.cfm?story=discount
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