5 Factors That Affect Your Rates | Home Insurance 101

5 Factors That Affect Your Rates | Home Insurance 101

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Homeowners Insurance 101: 5 Factors That Affect Your Rates

1. Deductible
This is the amount you must pay toward a claim before your insurer steps in to pick up the remaining amount. The lower your deductible, the higher your premiums.

2. Insurance Score
Having a lower debt-to-income ratio and avoiding tax liens or bankruptcy are all ways your personal finances can have a tangible impact on your premiums.

3. Age, Construction & Renovation of Your Home
Replacing your roof can help to reduce the chances of major damages and, in turn, reduce your premium. On the other hand, turning an outdated kitchen into an updated open-concept space will increase your premiums because it costs more to insure.

4. Location
Living close to emergency services, like a fire or police station, means it would take far less time for them to respond to a fire or burglary at your home.

5. Claims History
Although claims happen, filing too many may be a red flag for insurance companies and they may increase your premiums to offset any potential future claims.