Ask anybody and they will likely tell you that homeowners insurance is a necessary investment. While it’s common knowledge that you should have homeowners insurance, not many people are aware of what goes into creating a policy and determining what you will pay on a monthly basis. At Fabulic Insurance Agency in Louisville, we are dedicated to helping people just like you find the coverage that is right for their needs, and that process starts with understanding how the cost of your insurance is determined. Continue reading to learn more and give us a call to start saving!

The Amount of Coverage

When you create a policy for your home, typically, you can decide how much or how little coverage you want. As you can imagine, if you decide to get more coverage, your homeowner’s insurance cost will be higher than if you had less coverage. With that in mind, it’s always recommended to aim for more coverage, as well as umbrella insurance to cover as many damages as possible.

Your Home’s Age and Condition

The age and condition of your home will also affect your homeowner’s insurance cost. Older homes are usually more expensive to insure, as the materials used to build the home could be more expensive to replace if damage were to occur. For this reason, if you plan to purchase a vintage home, it’s wise to expect to pay a little more than you would for a newer home.

Where You Live

Another factor that plays a role in your home insurance cost is where you live. Homes located in high-crime areas or those prone to natural disasters will typically be more expensive to insure. This is because there is a higher chance that your home could be damaged or destroyed, and the insurance company needs to account for that risk.

Home Security and Safety Features

Home safety plays a role in many aspects of your life, including the cost of your homeowner’s insurance. If you have security features like a home alarm system or smoke detectors, you could be eligible for a discount on your insurance. These features help to make your home a safer place, and in turn, lower the risk of damages that the insurance company would have to pay for.

As you can see, there are many factors that affect your homeowner’s insurance cost. At Fabulic Insurance Agency in Louisville, we can help you to understand these factors and find a policy that fits your needs and budget. Give us a call today to get started and start saving on your insurance!