The three major factors that influence the cost of homeowner’s insurance are given below. Take a good look if you are considering investing into one:
1. Compared to any other construction material, a bricked house is stronger and more durable. So evidently, the cost of a wooden house will go higher compared to a bricked one. It’s because of the fact that wood is more prone to damage from fires, natural disasters, and has less shelf life.
2. If you live in an area which is more prone to natural calamities, such as floods, tornadoes, and hurricanes, then your home insurance policy will cost more compared to houses in safer areas. Similarly houses in localities where burglaries and thefts are more common will also demand higher insurance premiums. To cut down on policy rates, buy a house in an area which is safe and secure.
3. These costs are directly proportionate to the house’s overall worth. Your policy would cost a lot more if your home’s worth were 2 million dollars and much less if it were only worth $100000. The same logic will be applicable if you own a swimming pool and if the items that are being insured are expensive ones like guns, diamonds, and other luxury items.
4. A house with an alarm system, smoke detector and sprinkler system will be less expensive to get insured and homeowners are likely to get discounts on premium rates.