Determining how much home insurance costs is based on several factors. The potential cost for your insurance coverage may be based on the location of the home, property values, and the cost of replacing the home in the event of a disaster.

Other factors that create an increase in the coverage amount include the types of coverage you decide to get. If you have the basic coverage that does not include flood or water damage or does not include wind or storm damage your premium will be lower. Of course, if you do not have the coverage against wind or storm damage, and high winds cause you to need roof repairs, the cost of those repairs will be directly out of your pocket.

Home Insurance Costs Based on Location

The national average cost for residential insurance is influenced by the location of the structure. For instance; if you have a residence in Oklahoma, you will pay an average cost of $3,500 each year for protection. These costs are created by the high instances of hail, tornados, earthquakes, and violent storms that occur in this state.

If you had the same size dwelling in Vermont you would pay an average of $675 each year for the insurance to protect it. This drastic price difference is created because Vermont is safer from many violent storms affecting Oklahoma residents yearly. Vermont also has a very low crime rate so vandalism and theft are less of a concern.

The location of the home is one of the highest contributing factors to the premium cost.

Why is the Cost of California Home Insurance Rising?

The average cost of home owner insurance in California is about $1,200+ a year. Compared to Texas, where residents pay closer to $2.000+ a year, the cost is fairly reasonable.

Within the state of California, the cost of insuring a domicile is about 900 dollars more than it waseight years ago. What is causing the rate increases?

Climate changes have created an increase probability of wildfires because it has changed the rainfall amounts, and increased winds. The entire state has seen premium rates go up because of the fire activity.

Other factors have also caused the rates to be higher for most residents. Landslides and mudslides are becoming more frequent. Most of these problems are caused by the fires wiping out vegetation that helped keep the earth from sliding down the hill.

Burglary and theft have increased across the state. Areas that have higher instances of wildfires see a greater burglary and theft ratio because people are asked to evacuate when a fire is threatening their property, and thieves take advantage of the home being left unguarded.

Things the Property Owner can do to Reduce Yearly Premiums

Homeowner insurance costs can be lowered if you take the time to address issues that make your home more susceptible to damages from wind, fire, hail, and other acts of nature.

Some of the ways you can lower your yearly premiums if you live in the Golden State are:

• When you do landscaping use a low-ignition mulch around your trees and flowerbeds. Composted wood chips are one type of mulch that is considered to be non-flammable.
• On the interior of the home use drywall instead of wooden paneling. Drywall does not ignite as quickly as paneling.
• For roofs with shingles make sure that your shingles have a class-A fire rating.
• Install double pane windows. This will not only help with insurance costs but will also lower heating and cooling costs.
• Install video surveillance cameras to help deter burglaries and vandalism.
• Trim all trees so the limbs will not fall onto your roof or another insured structure on the property.
• Clean away brush and anything that could ignite in a fire and cause the fire to spread rapidly. Clearing away brush and obstacles also reduces potential falls and injuries.
• Install a fence to prevent people or animals from being on your property without your consent.
• If you have a wooden fence install a metal barrier or a stone barrier between the fence and your home to reduce fire spreading risks.
• Build with external components thatare fire resistant or non-flammable like stone, brick, and metal. Metal roofs are less likely to burn than shingle roofs.
• Keep your gutters cleaned.
• Place a wire mesh barrier over vents and openings.
• Have your chimney cleaned regularly.
• All-electric homes have fewer fire hazards
• Add smoke detectors to the home
• Put up a fence around a swimming pool
• Get a fire sprinkler system installed
• Install carbon monoxide detectors
• Install deadbolt locks
• Upgrade heating and electrical systems
• Upgrade plumbing

Monthly Payments or Annual Payments

How you pay for your coverage will make a big difference in the cost of the coverage. Most people choose to make monthly payments to their agents because they do not have to come up with as much money at one time.

If you will pay your entire premium cost at one time you will save up to 20% on the total cost. When you pay monthly the company charges you fees for convenience.

Deductible Amounts Matter

When something happens to your property and you file a claim to be reimbursed for the damages by your insurance provider you will be required to pay a certain amount of the cost out of your pocket. The out-of-pocket cost is called a deductible.,

When you are choosing how much deductible you want to pay remember that the higher the deductible is for you the lower your premium costs are.

If you pay a $1500 to $2000 deductible when damage occurs your premium cost will be much lower than if you choose to have no deductible or an amount that is less than $1000.

Final Thoughts

If you would like to learn more about home insurance costs and keep your premiums as low as possible visit thedigitalinsurance.com. The amount you have to pay each year can be controlled with a little research and a few preventive measures.