The price of your premium is partially determined by things like the amount of the homes’ square footage, age and type of building materials used in the structure. It is also important to note whether your home has been recently updated or renovated as well as if there have been any additions made to it. All of these aspects will help the insurance company figure out how much it would cost to rebuild your house in case of a disaster. The more expensive the rebuilding costs the more expensive your insurance policy will be.
The closer your home is to a fire hydrant and a local fire station, the more likely your home is to be saved should a fire occur. This means less damage to repair and your insurance costs will be lower if you live close to these fire protecting features.
If your home is in an area that
is particularly prone to hurricanes or tornadoes, your homeowners insurance costs will be higher to account for this increased risk. Remember that earthquake and flood protection are not included in a standard policy. If you need to purchase either of these, you will obviously have to pay higher insurance premiums.
Since part of a homeowners insurance policy covers the cost of damage or loss of personal property due to theft or vandalism, the local crime rates will be factored into your premium price. A home located in a crime-ridden urban area will certainly mean higher costs than one situated in a quiet, suburban neighborhood.
There are many nice insurance features that are not necessarily included in a standard policy. These include things like guaranteed replacement cost coverage, inflation guard clauses, and building-to-code endorsements. If you plan on adding any extras to your policy, you should expect to pay higher premiums.