Your home is an excellent investment, and you need to protect it by purchasing home insurance. However, one vital factor to consider when buying house insurance is the premium cost. You want an affordable premium, but the prices may vary due to some influences. The following are factors influencing the cost of homeowners insurance premiums.

Type of Coverage 

Homeowners insurance offers various coverages:

• Dwelling coverage. This covers your entire house, including the roofing, walls, and foundation.

• Other structures coverage. This covers other property structures separate from your house, like fences and sheds.

• Personal property coverage. This covers your belongings in the home, like electronics and furniture. 

• Extended coverage. This covers valuable items such as jewelry and furs whose value exceeds your personal property coverage limit.

• Liability coverage. This covers visitors that sustain injuries while on your property.

Dwelling, personal property, and liability coverage are the primary house insurance coverages. If you add extra coverage to your policy, you'll have to pay a higher premium.

Age and Condition of the House

Old, vintage houses with unique building materials, such as authentic ornate siding, are highly valued, and insurers charge higher premiums for them. This is because repairing or replacing these features is costly. Older houses may also have obsolete systems, such as plumbing systems that insurers consider high risk.

Additionally, if your home is in good condition, the premium amount will be lower due to low repair requirements. If the home has damages such as roof leakage, the repairs can be costly, resulting in high insurance premiums.

Area of Residence

The region you reside in affects the cost of your house insurance premium due to various factors, including the area's susceptibility to crimes and natural disasters. For instance, home insurance providers usually charge a higher premium if your residence is in a region that's prone to flooding or earthquakes. This increases the risk of the insurer due to damages caused by floods or earthquakes. Additionally, if your neighborhood is a crime hotspot, you'll pay higher premiums due to the increased risks of theft and burglary.

Amount of Deductible

A deductible refers to an amount you pay towards an insurance claim. You can choose a lower or higher deductible depending on your budget. High deductibles mean a lower risk to the home insurance provider, resulting in reduced premium charges. Therefore, consider choosing a higher deductible limit to reduce your premium cost.

Common factors that influence home insurance premium rates include the area you reside in, the condition and age of your house, coverage type, and the deductible. Consider these factors to estimate your premium rate accurately. Reach out to a home insurance company near you to learn more.