If you’re buying home insurance, the biggest question on your mind is probably how much you’ll have to pay each month. However, you might not be familiar with the reasons why the price varies so much from one homeowner to another.
The location of your home plays an important role
Homes in different regions face different risks from the natural environment, and there also are substantial differences in the rates of vandalism between different regions. People who live in regions where the risk of property damage to one’s home is higher will pay more for home insurance every month. Some examples of factors that are taken into account are how vulnerable properties are to hurricanes, flooding, tornadoes, and property crime.
Your home itself plays a major role
The cost of home insurance on a higher value home is likely to be more than a home that is lower in value, which is because severe damage or destruction of a high-value home is likely to be far more costly. Another factor that impacts the cost of home insurance is whether your house is ever rented out to tenants or guests. Homes that are rented out are often at an increased risk of damage, which can raise your rates. The overall condition of your home is also a significant factor that’s considered. As you would expect, homes that are in poor condition and/or contain significant fire hazards are likely to require higher insurance premiums.
Your own history as a homeowner can factor in as well
People who are new, first-time homeowners may face higher rates than individuals who have owned homes previously, and you may get a lower rate if you’ve owned a home for a considerable period of time. Also, individuals who have a history of homeowner’s insurance claims may pay a somewhat higher rate than those who do not.
If you’re looking for affordable home insurance, give us a call!
All Star Insurance offers home insurance to homeowners throughout the state of Texas. We offer high-quality coverage at affordable rates. So, give us a call at (254) 781-3549 to get a quote or sign up for coverage today!