Wondering what determines the cost of homeowners insurance? Here are some factors that may affect your homeowners insurance premium First, consider your types of coverage

Certain coverages, such as dwelling, personal property and liability, are standard parts of a homeowners insurance policy You may decide it makes sense for you to add optional coverages, as well For instance, if you purchase water backup coverage, you’ll likely pay a bit more for that added protection Each coverage in your policy has its own limit A limit is the amount of coverage you purchase and the maximum amount your policy will pay for a covered claim

The limits you select may play a role in the cost of your homeowners insurance Next, think about your deductible This is the amount you typically have to pay out of pocket toward a covered claim before your insurance coverage kicks in If you select a lower deductible, you will typically pay less out of pocket toward a covered claim However, the overall cost of your insurance premium may be higher

On the other hand, if you choose a higher deductible, your out-of-pocket costs will typically be higher – but your premium may be less Homeowners insurance prices can vary because no two policies are alike Contact a local agent to get a homeowners insurance quote for the coverages that fit your needs