What Are The Key Things That Affect Home Insurance Pricing?

Home insurance pricing is affected by a number of factors.

Credit Score: a good credit score will give you up to a 50% discount because it is the singlebiggest statistical determinate for furture claims.

Size of the Home: a mansion will cost more than a bungalow.

Location  of the Home: Is the home within 5 miles of a fire station and if so, what is the quality rating of that station.  Location also determines if the home is in a flood zone and how severe the flood risk is.

Condition of the Home: If the home has any one or more of these items: pressurized pipe that is galvanized metal, has electrical that has not been completely updated to romex wiring and at least a 100 amp breaker panel ( no knob and tube or cloth wires), a roof that is not in good condition or over 25 years old, the home is not on a cement perimeter foundation, or the home is not in good upkeep, then you will pay 2-3 times the premium and likely be in a secondary insurance market that is not as well regulated and the coverage will not be as broad.

Prior Claims at the Home: You may be just buying the home but if the previous owner had insurance claims in the last 5 years, you will likely pay more for a few years.

Which Insurance Company You Select: Believe it or not, there really is big differences in prices between insurance carriers for home insurance, with a price swing of about 30% for a preferred home. Even more importantly, unlike care insurance which has pretty much the same coverage no matter the insurance carrier chosen, coverage on homes varies greatly so be sure to ask for Guaranteed Replacement Cost, Comprehsive Perils, Ordinance and Law Coverage, Back Up of Sewer and Drain Coverage and Addtional Living Expense of at least 25%.