New homeowners often wonder why the insurance costs of their homes are on the high side. Even long-time homeowners might notice an increase in their home's insurance cost. The pressing question remains; "Why is my homeowner’s insurance so high and how can I reduce it?"
Every homeowner has a budget with which they run their homes. It will be a burden on their wallets to pay high insurance alongside other utility bills–energy bills, water bills, and the likes.
It is essential to know the critical factors that raise insurance cost. Even home buyers need to have this knowledge, so they are prepared for it beforehand.
Your home has many unchangeable features that contribute to the homeowner’s insurance cost. However, there are several ways to minimize the risks and reduce the cost of insuring the home.
Location
Location is one of those things about a home that can't be changed, and it has a significant influence on how much you pay for insurance. If your home sits close to beaches, it is prone to flooding and other natural disasters that are water-inclined. A house in a 'safe zone' will not pay the same insurance as another in areas prone to flooding. This aspect is one thing the insurance company considers.
Structure of your home
Another thing to consider when testing a home's risk is the structure and build of the house. Older homes are seen as high-risk structures by insurance companies. Age will require them to quote a higher homeowner's insurance cost or outright refuse to insure the property.
Also, houses built with wood are susceptible to the devastating spread of fire which increases the risk to such property. The higher the risk, the higher you pay for insuring the home.
Condition of the roof
The roof is perhaps the most critical part of a home. It is usually the largest and suffers from all the exposure to environmental conditions. Roofs have a life span, and it costs a lot to replace them. In older houses, chances are the roof will need a replacement soon and this tells negatively on your insurance.
Home safety
Where a home is located will always determine the cost of insuring it. If your home is in a neighborhood that experiences frequent burglary, homeowner’s insurance cost will be high. It will cost you more to protect your home if it's in an area prone to natural disasters like earthquakes, flooding, tornado, etc.
