Purchasing homeowners insurance protects your home and assets in case of emergency. As premiums increase, you may wonder what affects insurance costs. There are several factors determining the cost of your homeowners insurance, and understanding them will help you choose the best coverage.
Geographic location
Geographic location plays a huge role in homeowners insurance costs. Areas inclined to certain natural disasters can see a spike in insurance price. Some natural occurrences are not covered under standard insurances.
For example, you may live in an area prone to wildfires. Yes, fires are covered under standard insurance. However, if you live in a place where they often occur, insurance costs may rise.
Home structure & condition
The premium cost of your insurance may be higher depending on the condition of your home. Living in an older hold may signal repairs may be needed more frequently. Due to this reason, the homeowners insurance premium would be higher.
Roof condition
In addition to the overall home condition, the state of your roof is a large factor on insurance premiums. If the roof is older, it will need to be replaced sooner, and the cost of this replacement can be significant. If the home you purchase needs this replacement sooner, insurance premiums may rise.
Home safety by location
Many factors in your very own neighborhood can have an effect on the cost of your insurance. For example, you may live in an area prone to tornadoes. Due to this occurrence happening frequently, it can increase your insurance cost.
However, if you live in an area less likely to be hit by large storms or other natural perils, your insurance premium may be lower.
About the Author
Kyung Kim
Hi, I'm Kyung Kim. I immigrated from South Korea to the United States in 1968 when I was 7 years old. I have seen my mom struggle with the English language and work hard to raise her four kids by herself. Still to this day, I don't know how she pulled it off, but she bought her first home in 1979 for $70,000 and because of that decision, she was able to live without worrying about her financial future. I want that for everyone, to feel the pride of home ownership and to build their financial wealth using real estate as part of their financial portfolio. I feel so blessed to play a small role in helping others reach this goal.
I live in Beaverton with my husband, Richard. My mom, who lived with us for several years, passed away in our home in February 2022. Her first home purchase in 1979 made it possible for her to live to the very end, without worrying about her finances. As of August 2022 with a little downpayment assistance, our four children own their own homes. Being in real estate, I quickly realized that if they didn't buy now, they may be priced out of the market in the future. Whether that would have been the case, we will never know, but what we do know is that they are all realizing some good, healthy appreciation in their home values.
As passionate as I am about people owning their homes, I'm also passionate about giving back to our community. I support Compassion First, a non-profit organization that provides aftercare for sex trafficked girls in Indonesia. My husband and I also feel called to financially support social injustice organizations.
I'd love to assist you. Whether you're in the research phase at the beginning of your real estate search or you know exactly what you're looking for, you'll benefit from having a real estate professional by your side. I'd be honored to put my real estate experience to work for you.
