How Much is Homeowners Insurance?

Why do you need homeowners insurance and how much is it?

Homeownership brings both security and responsibility. When purchasing a home, one crucial aspect to consider is homeowners insurance. This insurance can offer financial protection against unforeseen events. However, homeowners insurance premiums can vary.

Whether you’re a first-time homeowner or seeking ways to optimize your coverage, it’s essential to understand the intricacies of homeowners insurance pricing.

What Impacts the Cost of Insurance?

The following factors can influence the cost of homeowners insurance:

• Location—Where your home is situated significantly impacts your premiums. If you live in an area prone to severe weather or high levels of crime, insurers may consider it riskier to insure your home, leading to higher rates.

• Dwelling coverage—This financially covers your home’s structure. The replacement cost (how much it would cost to rebuild) affects your premiums. Larger homes or those with unique features may have higher replacement costs.

• Credit history—Insurers often use credit scores to assess risk. Having a strong credit history may result in reduced insurance premiums.

• Claims history—Frequent claims may increase your rates. Insurers view a history of claims as a higher risk.

• Age of home—Older homes might have outdated systems, making them riskier to insure.

• Deductible—Choosing a higher deductible can lower your premiums, but you’ll pay more out of pocket in case of a claim.

How to Save on Insurance

The following are ways you may be able to lower homeowners insurance costs:

• Bundle policies. Consider combining your home and auto insurance with one provider. This often leads to discounts.

• Ask for discounts. Inquire about available discounts. Some insurers offer price breaks for safety features, loyalty or other factors.

• Choose a higher deductible. While this means paying more out of pocket in case of a claim, it can reduce your premiums.

• Improve your credit. A good credit score may lead to lower rates. Maintain a healthy credit history.

• File claims sparingly. Frequent claims can raise your premiums. Use insurance judiciously.

Homeowners Insurance in Colorado Springs, CO

Contact Legacy Insurance to discuss your homeowners insurance today.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.