When you own a home, you will probably be required by your mortgage lender to have homeowners insurance. While homeowners insurance is not mandated, lenders want to know that their investment is protected in the event of a disaster. It's always a good idea to have insurance for your home, even if you aren't required to do so. This insurance protects your home in the event of a natural disaster, fires, and even theft. How your premium is calculated is based on a number of factors, and you may want to get quotes from several insurance providers before deciding on a policy.
The Features of Your Home Impact Your Insurance Premiums
How old your home is, the size of your home, and the style of your home will all be considered when coming up with your insurance premium. When you own an older home, this can be more expensive, as the expectation is the home will probably not withstand a natural disaster as well as a new structure. Your premium will also go up or down based on what your structure is make out of such as brick, stone, or wood.
The Location of Your Home Matters
If your home is in an area that is at high risk for theft, your premiums will likely be higher. In addition, if you live in an area that experiences hurricanes or other severe weather, you will pay more than a homeowner who lives in an area that has few weather emergencies.
You Can Lower Your Premium When You Install Protection
When you install a burglar alarm system in your home, have working smoke detectors, and have fire extinguishers throughout the home, you will be able to bring down your homeowners insurance premium. In addition, if you install a sprinkler system in your home, this can bring down your premium even further.
How You and Your History Can Affect the Premium You are Quoted
If you are a smoker, you may have to pay more for your homeowners insurance than a person that doesn't smoke. If you have good credit, you are likely to have a lower premium. An insurance company can also charge you a higher premium if you have made previous claims on a policy for your home.
When you are looking for a homeowners insurance policy and trying to save money, make sure that you have any protective devices you can afford. Get several quotes and choose the company that makes you feel the most comfortable.