Finance

11 Things That Affect Your Homeowners Premium

It’s never too late to get an insurance plan for your home. Whether you’re single or have a family, arranging home insurance enables you to guard your assets during an unfortunate event. Many factors can affect your insurance plan’s cost, so if you’re shopping around for Maryland homeowners insurance, it’s a good tip to remember a thing or two to get the best deal out of the transaction.

Here are 11 things that affect your homeowners premium.

  1. Your zip code

Insurance plans are meant to protect you in the event of natural disasters. Don’t be surprised if Maryland homeowners insurance charge a higher premium in places where earthquakes or tornadoes frequently happen because these will entail additional coverage.

  1. How old the house is

Homeowners drawn to vintage houses should be prepared to pay a higher premium. Sometimes, work needs to be done to older houses to ensure they are up to date with building safety codes, and these can jack up the premium.

  1. Maintaining an outstanding credit history

All Maryland homeowners insurance do research on their clients to develop a plan tailored to their needs and personality. If you have a good record of paying your debts on time and having a manageable debt at the time of application, this can lower your premium.

  1. Remodels done in the home

Remodels can increase or lower your premium depending on the type of work done on the structure. Fixing broken features at the house can make it a safer place and lower your cost. But some remodels like room upgrades can significantly increase the home value and with it, the premium for homeowners.

  1. Additional home features

A swimming pool in the property means homeowners will need to get added coverage in the event of an injury. However, this cost is minimal, so you can still go for the pool if you really have your heart set on it.

  1. Combo deals from insurance companies

It’s common for insurance companies to offer lower Maryland homeowners insurance if clients apply for their other products like car insurance. Explore these options if you have some assets that you want to protect.

  1. What state you’re in

Insurance premiums can vary from state to state. These can start from the hundreds up to the thousands. Places like Idaho will cost around $600, while Wisconsin residents are looking at around $1000. Florida houses can set you back more than $2000.

  1. Recorded claims history

Previous claims made for your previous place of residence will be taken into consideration when you’re applying for home insurance for your new house. If many claims have been made before, expect a higher premium today.

  1. Coverage limit

You have the option to raise the coverage limit or maintain it at a low amount. Higher coverage may mean higher premiums, but you can expect a bigger payout from insurance companies in the event of a catastrophe.

  1. The amount of your deductibles

Take your time and consider all the items that can be included as deductibles. This can slash premiums by about 20 percent or more.

  1. Your personal items

Keep in mind that if you’ve amassed a good number of valuable items like art or antiques, these will increase your premium.

At Insurance Brokers of Maryland, we can help you find the best Maryland homeowners insurance to protect what’s probably your biggest investment. Contact us today.

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