Home insurance rates vary depending on many factors. Shopping around for the lowest price can save you money and still provide you with the coverage that you need.
Check the insurance department's website in your state to find out what is the average cost of homeowners insurance. The average rate of homeowners insurance companies in your area can be found on the website of your state's Insurance Department. Rates will likely vary from one insurer to another, however, because each company weighs the rating factors differently.
Your deductible
The deductible for your home insurance is just as important as the deductibles you choose for health and auto insurance. It determines the amount of money you will be required to pay on any claim, or for any problem (such as a broken window or leaky pipe). Low deductibles will raise your premiums, while high deductibles can reduce them.
Your zip code
Your home's zip code has a direct impact on your home insurance quote. If you live in a neighborhood that is more prone than others to burglary, your rates will be higher. As well, those areas more susceptible to natural disasters such as earthquakes and hurricanes will be more costly.
Local fire protection
If your neighborhood has a fire station and hydrant, you may qualify for lower insurance costs. The same goes for homes with safety features, such as a home security system and an alarm.
Home improvement activities
Additions or remodeling can increase the value of your home, making it less susceptible to damage during a catastrophe. This could save you on your insurance. A new kitchen, or even an additional bedroom can help you save money on your insurance policy.
You may also see a difference in your rate based on what type of property you own, and the age. Older homes, for example, are more susceptible to damage from fires and flooding than newer homes.
You will also be able to see a difference in your quote if you are a frequent claimant. If you've had a number of small losses over the years, your insurance company will be more likely to give you a discount than if you haven't filed any claims in the past.
You're policy fine print
The deductibles, limits and coverage categories in your home insurance policy will differ from one company to the next. It is because all companies want to maximize profits by offering packages of coverage that appeal to as many customers as possible.
It can be difficult to read the fine print, but it's worth it because it will help you better understand what is covered and what is not. You can also decide whether you want to enhance your policy's protection by adding more specialized coverage.
You can ask your agent for help. The agent will explain all of the available discounts to you, as well.