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What Affects The Price Of Homeowner's Insurance?

Homeowner's insurance is designed to bring your home and possessions back to the same condition they were in before a loss occurred. There are several different types of homeowner's insurance policies offered by a wide variety of insurance companies. As a result, not all coverage's are the same. It is important to review all your options and coverage's so you can make an informed decision.

What affects the price of homeowners insurance? Below are the most critical factors:

The amount of coverage

How much coverage you choose has a significant impact on the price of the policy. If you have some particularly valuable items such as expensive jewelry or antiques, they probably won't be covered in your general homeowner's insurance policy. You may need a rider to include extra coverage for those items not included in the general policy.

Homesite homeowner's insurance policies include the following coverage's:

  • Dwelling coverage up to the limits you choose to purchase.
  • Coverage for your personal property up to the limits you choose to purchase. (Be sure to ask about Replacement Cost coverage for your personal property.)
  • Coverage for structures in addition to your primary dwelling, such as storage sheds, boathouses, and pools.
  • Coverage for loss of use, reimbursing you for expenses for loss of use of your home caused by covered perils.
  • Medical expenses, paying up to $1,000 per person if someone is injured on your property.
  • Liability exposures, protecting you against certain risks up to $100,000* per accident for bodily injury or property damage.
  • Higher limits of liability and medical expense coverage's, available for a small charge.


Expect to pay a higher premium rate if you live in an area prone to natural disasters.

Neighborhood Crime

Discounts are usually offered if you purchase a home security system.

Fire Safeguards

It will help your homeowner's insurance policy rates if you live near a firehouse. Even if your home is not located in close proximity to a firehouse, it is a good idea to rid the area around your home of as many fire hazards as possible.

Condition, Materials and Age of the Home

Many homeowners probably do not have a clue what building materials were used when their home was built, but most know its age. Brick homes carry lower insurance premiums than would a house made from mostly wood or other flammable materials. Generally speaking, insurance companies charge higher premiums for an older home or one that is not well maintained.


For current homeowner insurance policies, the frequency of your claim record will translate into higher rates. Carefully evaluate every claim before submitting it for reimbursement. Ask yourself, if the claim is worth risking a hike in your premium next year? Preventive maintenance, and keeping up with small problems, will prevent larger and more costly ones in the future.

Credit Score

No insurance company can refuse you coverage based on a low credit report score (Alone or Soley). What they can do is take your score into account, and if it is high enough, they may offer a discount.

Deductible Amount

There is a rule of thumb for homeowner's insurance policies: The lower your deductible, the higher your premium. A higher deductible could reduce your premium costs up to 25 percent.

Take a few minutes to get a free, no obligation homeowner's insurance quote, and see just how affordable our rates can be.

Content provided by Helium Inc. This information is provided for your convenience; it is not intended as insurance advice. The views, opinions, and advice expressed in this article are solely those of the author and not those of Homesite Group Incorporated. Please consult your insurance carrier or agent for information regarding your policy or coverages.
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