We all want to have a beautiful home when we grow up – somewhere to build a family, make memories, and grow old in. Having or building that dream house with your husband or wife is usually part of our fantasies as little children. But when we grow up, we realize the world is a lot more difficult than our dreams and fantasies, and having a home is expensive. Apart from the cost of buying or building a house, another cost that adds up is home insurance. It can be very expensive. But the question is, why? What are the things that affect the cost?
Factors That Affect Home Insurance Cost
There are a number of factors that can affect insurance premiums. If you want to stop overpaying on your home insurance, here are some factors you should look at which you might be able to change or improve on:
- Age of home: newer homes usually have better premiums because older homes are more susceptible to wear, tear, and damages
- Having pets: sometimes having pets affect your insurance premium. Especially if you have dog breeds that certain countries tag as “dangerous”
- House size and building material: generally, the bigger your home, the more it will cost to insure. This is the same with the materials you use. If your materials are more expensive, or are top-quality, this can also affect insurance cost
- Swimming pool or trampoline: sometimes having these in your home can also raise insurance rates
- Low credit scores: some insurance companies adjust the premium based on your credit score. People with higher credit scores tend to receive better premiums whereas if you have a low credit score, you will not get the best premiums
The company itself: insurance companies all vary in rates and premiums offered. So it might be a good idea to look around and see what premiums each company offers to find the best rate.