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8 Factors Affecting Your Homeowners Insurance in Montgomery County, PA

If you’re a homeowner, you likely already know the risks of owning and caring for your property. From weather and fire damage to theft and liability lawsuits, threats to the well-being of your Southeastern PA home are always possible — and often unexpected.

When you purchase homeowners insurance, you can safeguard your most valuable investment from the high costs of these risks, granting you greater peace of mind in the event of a disaster. But just like other types of coverage that protect against financial losses, the cost of your homeowners insurance in Montgomery County will vary based on a multitude of factors.

Key Factors Affecting Homeowners Insurance Premiums

According to S&P Global Market Intelligence data, average home insurance rates increased by 11.3% as of December 2023. Although inflation has slowed down a bit, the insurance industry is still catching up to higher costs associated with claims. New supply chain disruptions associated with hurricane damage in the south will not promote rate stabilization, unfortunately. We expect rate increases to continue for some time.

Pennsylvania’s rate increase remained lower than the national average, at about 7%, according to S&P. Of course, average rate increases vary by location within the state. As homeowners work with their agents on renewal, they will see varying percentages of rate change. One thing most PA residents can be assured, however, is that their rates will go up. 

It’s important to understand what affects homeowner insurance rates so that you can make an informed decision about your coverage. Despite the high priced environment, cost savings are available with some reasonable tradeoffs.

Your home’s age and condition

When your home was built and how it has held up over the years can significantly affect the cost of your homeowners insurance in Montgomery County. Older homes are typically prone to damage and require more regular maintenance, which can result in higher insurance premiums. Similarly, homes in poor condition will experience more and more structural and mechanical issues, leading to inflated coverage rates.

Your home’s location

A state’s weather and risk of natural disasters are leading considerations when calculating the cost of a home’s coverage rates. Fortunately, Pennsylvania residents enjoy much lower premiums — $1204 per year — than the national average, which is $2,285 as of October 2024.

More localized factors also have a say in how much of a risk your home is to insure, such as city and zip code. Because urban home prices are often higher than in rural areas, premiums tend to be heftier in the city. Interestingly, homes that are close to a permanently staffed fire company may see some benefit in their rates. Crime statistics in your community will also have an impact.

The type and amount of coverage

Like auto insurance, higher homeowners insurance coverage levels result in higher premiums, as your insurance company will have to provide more financial protection in the event of damage.

A standard homeowners insurance policy typically covers:

– Your home/other structures on your property

– Your personal property

– Liability against lawsuits/related costs

While your policy will cover each to a certain amount, you can increase your limit in exchange for a higher rate. Additionally, your premium will go up if you tack on greater coverage for protection against risks not typically covered by standard plans, like floods or earthquakes.

Take a critical look around your property. If you can reduce some of your risks, you may be able to reduce your coverage limits. For example, cut down diseased or dead trees that are at risk of blowing over or losing branches. Repair uneven and broken spots in your sidewalk or driveway. Have you been thinking about removing your swimming pool, or demolishing that broken down barn on your property? Many of these maintenance tasks make your property safer, allowing you to adjust your policy.

Your credit score

Insurance companies may consider your credit score when determining your insurance premium, as it indicates your financial stability and the possibility of defaulting on payments. With a higher credit score, you may be eligible to secure lower insurance premiums.

On the other hand, a lower credit score may indicate that you are a higher risk, and as a result, you may have to pay a higher premium for your homeowner’s insurance.

Your claims history

Insurance companies take into account the likelihood of you filing a claim when determining your insurance premium. If you have a history of filing a lot of claims in the past, you may be seen as high risk by insurance companies and be charged higher premiums.

Additionally, certain types of claims can lead to a higher premium than others. For example, a claim for a major natural disaster might not affect your premium as much as a claim for a break-in would.

If you are not sure whether or not you should file a claim for something that happens at your house, call your local agent first. They can make sure you understand all the ramifications of filing a claim so that you can make the best decision for your situation.

Your deductible

When finalizing your home insurance purchase, the deductible you choose is one of the most important aspects to consider. Higher deductibles can lead to lower premiums, as you’ll be taking on more risk in the event of a claim.

Still, a higher deductible may also mean paying more out of pocket to compensate for damages.

If you have money in savings, it might be worthwhile to increase your deductible. Or if you’re not ready for that step just yet, commit to getting that amount set aside before your next renewal period so that you can take advantage of lower premiums in the future.

Your home’s safety features

Homes with features such as smoke detectors, water sensors, burglar alarms, or fire sprinkler systems may have lower insurance premiums due to the reduced risk of damages or injuries. Some insurance companies even offer discounts to homes with these safety features, as there’s less likelihood of a claim.

Your insurance company

As a bottom line, it’s important to choose your insurance company wisely. Different insurance providers may offer different rates and personalized coverage options, so you need to shop around first to find the right plan. For the best results, you can work with an experienced independent insurance agency that gathers and compares quotes to find the one most suited for you.

Freedom Insurance Group, Inc. — Helping You With Homeowners Insurance in Montgomery County

Finding coverage that meets your budget and protects your property doesn’t have to be a hassle. At Freedom Insurance Group, we partner with today’s leading insurance companies so that you can have top-tier, reliable coverage with affordable premiums. When you choose us, our team will review your coverage and rates every six months to ensure you’re always getting the best deal for your Pennsylvania property.

Contact us today to get your free quote for homeowners insurance in Montgomery County, PA