- Home age and materials. These two factors affect the premium you'll pay for home owner's insurance. Older homes are more prone to electrical, plumbing, roofing and foundation problems and thus can increase your premium. Check with your insurance provider to see if renovations can keep these related expenses down. Wood materials often warrant a higher premium because they are more susceptible to fire and water damage.
- Location. Lower premiums are granted to homeowners who live near fire stations and not in flood plains or areas prone to natural disasters such as earthquakes. Additionally, neighborhoods with a high claim frequency may charge homeowners a higher premium.
Fortunately, there are many things you are can do to lower your home insurance premium, such as:
- Increase your deductible. Generally speaking, there is a tradeoff between your monthly coverage payment amount and your deductible. A higher deductible means you will face lower monthly payments, but should you make a claim, you will be held responsible for paying more upfront.
- Find a provider who is a good fit for you. For example, some companies will charge higher premiums to pet owners. When shopping for an insurance provider, search for one that is pet-friendly and does not up-charge for pets.
- Keep your credit score as high as possible, which requires you to pay bills on time and avoid accumulating high levels of debt.
- Increase security by installing an alarm system, gated entrance, insurer-approved locks, or fence. These measures all result in a reduced likelihood that your home will be damaged or destroyed. Have fire sprinklers and an extinguisher, and take other precautions as needed. For instance, if you live in hurricane-prone region of the U.S., install hurricane shutters. Remember that floor insurance is a separate entity than home owner's insurance and should also be considered based on where you live.
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