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8 Factors Affecting Your Homeowners Insurance Premium in Montgomery County

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 Keystone State home are always possible — and often unexpected.

When you purchase homeowners insurance, you can safeguard your most valuable investment from a plague of 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, home insurance premiums have soared by 9.3% from January 2021 to November 2022, with the Insurance Information Institute projecting that number to only go up further into 2023. As premiums steadily rise, understanding what affects your insurance costs can help you make more informed decisions about your coverage and scale back on the price.

Your home’s age and condition

When your home was built and how it’s held up over the years can significantly affect the cost of your homeowners insurance in Montgomery County. Older homes are typically more prone to damage and require more regular maintenance, which can result in higher insurance premiums. Similarly, homes in poor condition often require more time spent with the toolbox to fix problem areas, 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 natives enjoy much lower premiums — $930 per year — than the national average, which is $1,784 as of January 2023.

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 home prices are often higher in urban places than in rural areas, premiums tend to be heftier in the city. Alternatively, how close your home is located to a permanently staffed fire department is also a variable in your rate, as well as your area’s crime rates.

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.

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.

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.

Your home’s safety features

Homes with features such as smoke detectors, 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 also work with an experienced 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 low 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.