4 Factors That Can Impact Home Insurance Rates

The average annual cost of homeowners insurance in the US is $1,445—but this rate can vary based on various factors. Everything from how old a home is to where it's located and even the homeowner's marital status can cause insurance premiums to go up or down. To help get the best coverage at a low rate, homeowners need to be aware of all these factors. Below are four things to consider before purchasing homeowners insurance.

The Owner's Marital Status

Being married or single will affect more than just a homeowner's personal life—it can affect them financially as well. According to Bankrate, insurers typically charge married couples lower rates because they are considered less of a risk because couples generally file fewer claims than single homeowners.

Having Home Security

Taking steps to reduce the risks of fire, theft, or any other home emergency can often lead to a lower homeowners insurance premium. Installing a burglary system, carbon monoxide detectors, and a sprinkler system are examples of things a homeowner can do to help lower their premium by 5% or even up to 20%.

The Home's Location

The location of a home can significantly impact premium costs. If the home is in an area prone to natural disasters, like tornados or wildfires, this is almost certain to increase rates. The neighborhood's crime rate can also affect premiums. The importance of location doesn't stop there. If the house is located in a district where the court system usually favors insurance customer plaintiffs in claim disputes, some insurers may charge more to help compensate for potential extra costs.

The Home's Age

How old is the home, and what condition is it in? Similar questions are what homeowners should expect when looking to purchase home insurance. Surprising factors such as building materials can even help lower premiums—people who own a brick home may pay up to 6% less than a homeowner in a wooden home because wood poses a higher fire risk.

Here are some other characteristics of older homes that may raise the insurance premium:

• They're more likely to need repairs than newer homes
• Building materials for repairs are usually more expensive and harder to obtain
• In some cases, if an older home has an old, damaged roof, coverage may be denied altogether

Shopping around for homeowners insurance doesn't have to be stressful. At Insurance Lounge, we make it easy to compare top carriers online, in-person at one of our storefronts, or over the phone. Work with an Insurance Concierge® today by filling out our online form to get a free, quick quote for homeowners insurance.