Multiple factors can influence your homeowners insurance premium. These factors can cause premiums to vary between policies. At the end of the day, you want to pay a fair, affordable price for your homeowners coverage. As such, it’s important to consider the different elements that can influence the cost of your policy.

Your Home’s Features

There are a few characteristics of your home that may affect your premium:

• Home value—The higher your property’s value is, the more coverage you will need. Additionally, your premium will also rise with your home’s value.
• Property age—If you have an older home, you likely have higher property damage exposures. This is because some unique, dated features of your home might be harder to replace. That being said, owning an older home could drive up your premium.
• Upgrades—Making home improvements typically increases your property’s value, thus requiring more coverage. Therefore, property upgrades can result in an elevated premium.
• Location—Homes that are located near bodies of water, within areas prone to natural disasters or further away from emergency services (e.g., fire or police departments) may encounter higher premiums.
• Home-based business operations—When you conduct business from your home, you might need to buy additional insurance. Though homeowners insurance might provide limited protection for commercial assets and liabilities, you’ll still need to add extra coverage. This added insurance will result in higher premium expenses. 
• Attractive nuisances—Property features such as trampolines or pools are considered attractive nuisances because they can be dangerous and could cause harm to others. As a result, these features will increase your premium costs.

Your Personal Information

Various personal demographics can influence your homeowners insurance premium, including:

• Credit history—The better your credit score is, the better your financial reliability will be in the eyes of your insurer. If you have a higher credit score, then your insurer is likely to award you with premium discounts.
• Insurance claims history—If you make homeowners insurance claims frequently, then you put a higher financial burden on your insurer. As a result, you could encounter raised premium expenses.
• Marital status—Those who are married have been found to file fewer homeowners insurance claims than single individuals. Therefore, if you are married, you will generally have a lower premium.

Your Policy’s Benefits

The way your homeowners policy is constructed will also determine your premium expenses. Policy items that might impact your costs include:

• Coverage type—There are three different coverage options you can choose from for your homeowners insurance policy. Actual cash value coverage will replace your property or damaged belongings, minus depreciation. Replacement cost coverage pays to repair or replace your property or belongings without any deductions for depreciation. Your insurer may also offer extended replacement cost coverage, which will pay to rebuild your property even if the replacement cost exceeds your policy limit.  
• Coverage limits—Your policy limit is the maximum amount that your insurer will pay in the event of a covered loss. You will likely have several coverage limits that apply to different homeowners benefits.
• Deductibles—Your deductible is the amount you must pay before your insurer will cover a loss. For instance, if you have a $1,000 deductible on a $100,000 policy, then you will pay the first $1,000 for a loss, while your policy will pay up to $99,000.
• Extra coverage—You may choose to purchase additional coverage for items or circumstances that may not be fully covered under a standard homeowners insurance policy. For example, you might need extra benefits to insure high-value jewelry or fine art pieces.

Overall, by knowing how to tailor your homeowners insurance policy, you’ll be able to secure the most affordable price. Our agents are committed to helping you comprehensively search the market to find a policy that provides both the value and the coverage that is perfect for your property.