Home insurance is essential if you truly want your property and possessions protected. While there’s no price-tag for peace of mind, home insurance premiums do vary, and it’s important to know what influences them. According to Somerset, Kentucky’s premier insurance company Cundiff & Company Insurance, there are several key factors that affect your premium. They advise that understanding each will help ensure you’re getting the best deal possible.

3 Factors That Affect Home Insurance Premiums

1. Home Age

The easiest way to make a reliable home insurance value and risk assessment is to exam the age of a home. As houses age, electrical wiring, plumbing, HVAC systems, and structural integrity all inevitably decline. They may also have lower-quality or outdated materials, and architectural trends from previous decades may be difficult to replicate if damage occurs. The more likely it is to cause damage or be damaged, the higher your premium will be.

2. Rebuilding Costs

If your home were destroyed today, the insurance company needs to know how much it would cost to rebuild it. This is based on size, amenities, fixtures, finishes, and architectural features. It also takes into account the fluctuating costs of construction and manufacturing. Collectively, this number may not match the purchase price of your home, but it’s what home insurance companies need to calculate a low-risk premium.

3. Outdoor Amenities

While pools, porches, and backyard play areas are great to have, they can significantly increase your insurance. These amenities could potentially cause more liabilities, meaning your property is will need high-risk coverage.

If you need home insurance, call the specialists at Cundiff & Company Insurance today. They’ve provided home insurance for over 40 years and will help you find a premium that matches your needs and budget. Call (606) 679-8379 to speak with an insurance agent, or visit their website to learn more about their services.