Major Factors that Impact your Homeowners Insurance Rates

Homeowner’s insurance is set up to protect the investment you have made in your home.  It protects your belongings from theft and damage from inside your home, and it will provide you with the security that you won’t lose everything in a natural disaster. There are several major factors that impact your homeowner’s insurance rates.

*Where you live

The state, city, and neighborhood you live in play a large part in how much you pay. The natural disasters common to your area and the crime rate help determine the cost.

*Cost of Rebuilding

Insurance companies take into consideration how much it would cost them to rebuild your home according to the cost of building where you live.  This would include the cost of materials and the cost of labor.

*Home Construction

The materials that were used to build your home are important. Certain materials are safer, more resistant to natural disasters and less flammable in case of fire.  If these materials were used, your insurance will be cheaper.  Take this into consideration when you do any type of renovation on your house.

*Fire and Police Departments

The proximity of your home to the local fire and police departments plays a big part in homeowner insurance costs. Whether or not the fire department has paid or volunteer firemen is also important.  This lets the insurance company know how safe your house is, and how quickly any problem that may develop can be taken care of.

Considering the poor economy and the need most families have to cut costs wherever they can, here are 10 things you can do to help lower your homeowner’s insurance premium.

*Don’t Insure the Land

Don’t insure the value of the land when you purchase homeowner’s insurance. The value of your house is the only thing that will be affected in case of a natural disaster, fire, theft or vandalism.

*Fireproof Your Home

Be sure to install fire alarms throughout the house. Even a fire sprinkler system is a big advantage. Place fire extinguishers in strategic places throughout your home.

*Use the Same Insurance Company

Insurance companies offer discounts to customers who have multiple policies with them. Consider purchasing your homeowner’s insurance and your automobile insurance from the same company.

*Stop Smoking

If you or someone in your family smokes, stop.  Smokers are considered a high risk to most insurers. If no one living in the home smokes, your homeowner’s insurance premium will be lower.

*Have Good Credit

It is not uncommon for an insurance company to check your credit rating before offering you a quote on homeowner’s insurance. People with high credit scores are considered more responsible and more trustworthy.  This means they are a lower risk for the insurance company.


Consider how much you can afford to pay out of your own pocket before you would need help from the insurance company. The higher deductible you can afford, the lower your insurance rate will be.  Save up the deductible you choose, and put it in a special savings account.

*Renovate Your Home

When you begin planning to renovate your home, consider updating the wiring, plumbing and heating systems. Use fireproof materials whenever possible.

*Cover Only the Necessities

When you purchase homeowner’s insurance only insure the things that are applicable to you. Don’t insure anything that you don’t consider necessary to live.

*Install Security Items

Investing in motion sensitive lights outside your home, a security system and deadbolt locks will put your home at a lower risk for break-ins and vandalism.

Before you purchase homeowner’s insurance, consider the major factors that impact your homeowner’s insurance that are mentioned above. By doing that, you have the power to considerably lower your homeowner’s insurance premium.  See how much you can save this year on your premium.