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7 Factors that Affect Home Insurance Rates

There are many factors that impact your home insurance rates. While your insurance provider can explain to you the factors that play a part in your specific premiums, it really all comes down to risk and how likely you are to file a claim. The key is to understand your risk and what you can do to minimize it. Here are a few factors that impact your home insurance cost.

Replacement Cost

Do not make the common mistake of under-insuring the value of your home, as this can lead to financial devastation if a loss occurs. Estimated replacement cost refers to what it would cost to build the exact same home where it currently stands. You can obtain an accurate replacement number by hiring a professional appraiser. This could be extremely beneficial in the settlement process if your home becomes damaged or destroyed.


A deductible is the cost of a loss before your insurer steps in to cover the claim. Choosing the right deductible amount is an important decision. The higher the deductible, the more you can save. However, depending on where you live, there may be other deductibles to consider when balancing your financial situation with the need to protect your house. Those living in a disaster-prone area may have a separate deductible for certain kinds of damage.

Do You Own a Dog?

The type of dog individuals own can significantly impact your home insurance rates. The liability portion of your insurance will protect you if you are sued by someone who is injured by your dog. Although, certain breeds of dogs are considered dangerous or might only be protected on a case-by-case basis, depending on whether an individual dog, regardless of its breed, is seen as vicious. To qualify for a policy, homeowners may be required to sign liability waivers for dog bites or take your dog to classes to modify bad habits. Be sure to provide details about your dog (breed and history) when discussing policy needs with your agent.


Any significant home improvement will likely raise the home’s value and therefore will require that increased value to be reflected in your policy. Keep your insurance agent up to date if you did some remodeling. Materials and construction costs will need to be considered for proper coverage.


The age of your home is a big factor in your home insurance rate. Even your home’s previous claims history can play a part in setting rates, and the age impacts the cost to rebuild a home, which reflects the coverage needs. It is common for those with older homes to pay more to rebuild and that’s why they face higher insurance rates.


It is crucial to estimate the true cost of rebuilding your home if it were damaged. How difficult would the house be to replace or repair? Speak to your insurance agent about determining an approximate cost to rebuild or check with a local contractor about average building costs in your area since what your home is constructed of can make a difference.

Credit History

Most insurers use your credit history when creating home insurance rates, each with their own credit formula, which is different from a credit score. Claims that you have filed in the past can affect you now. There is a real correlation between claims that have been made and the additional likelihood of claims from a particular individual. 

About A.J. Benet Inc. Insurance Agency

At AJ Benet Inc. Insurance Agency, we make sure that your New York Business Insurance policy includes more than the simple general liability and product liability. Our policies extend in cases where you underlying limits are exhausted. Our team of experts are willing to go the extra mile and not only protect your business but understand it. For more information, call us today at phone (888) 639-4560.

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