No one likes to think of theft, disaster and property loss during a new home search. However, these are potential risks and if you have a loan with a mortgage company then there will be a requirement to obtain insurance coverage for the home. Here are five things that factor into homeowners’ insurance coverage, and ultimately what you will pay for it.
- Where You Live
If your house is located in an area prone to natural disasters such as forest fires and floods, then expect to be required to have coverage for them – and pay more.
- Home Value and Condition
A larger home with more square footage and more belongings inside it will need more insurance than a smaller one. Similarly, the age of a house can also have an effect on a policy.
- The Deductible
While not directly related to your home or location, this definitely plays a role in what you pay each month. A higher deductible means lower payments. However, if you do need to file a claim then expect to pay more out of pocket at that time.
- Additional property
If you have other structures on your land or additional property such as expensive jewelry, then you should also add these to your homeowners to protect them as well.