Cost of Homeowners Insurance

Affects on Cost
Like auto insurance, the cost of homeowners coverage depends largely on where you live. Crime rates vary from community to community, as does access to your local fire department, police department, and water supply. These factors help determine the protection class. Along with the value of your house, the following factors determine the rates you pay for homeowners coverage:
  • Type of Construction: Frame houses usually cost more to insure than brick houses.
  • Age of House: New homes may qualify for discounts. Older homes may not qualify for preferred programs. Insurers may require older homes to have updated heating, plumbing, wiring, and roofing.
  • Local Fire Protection: Your home’s distance from a fire hydrant and the quality of your local fire department determine your fire protection class.
  • Amount of Coverage: The amount of coverage you buy for your house, contents, and personal liability will affect the price you pay.
  • Deductible Amount: Your choice of a higher deductible will reduce the price for homeowners insurance.
  • Discounts: Insurers offer lower prices for such things as insuring your home and car with the same company and installing dead-bolt locks or alarm systems.

Seven Ways To Lower The Cost Of Homeowner's Insurance
  • Consider increasing your deductible.
  • Make certain that policy limits reflect the actual cost of rebuilding.
  • Implement mitigation techniques, which are enhanced roofing systems, hurricane shutters, gable-end bracing, and others.
  • Consider reducing your contents coverage on your wind and hail policy.
  • Apply for a Safe Home Grant.
  • Shop around with other carriers using the department's Market Assistance Program.
  • Place your insurance coverages with one insurer.