Homeownership is so much more than mortgage payments and tax breaks. Owning a home is also a source of pride, a rite of passage, and a solid investment tool. Homes require a substantial financial commitment on your part. With all of the money, time, and effort that you’ve poured into your home, it’s only logical that you would do everything you could to protect it.
With a home insurance policy, you will have the security of knowing that an unfortunate event would not leave you homeless and penniless. A tornado, fire, or other disaster may strike your home, but your homeowners insurance policy would protect your finances from devastation. Your policy would allow you to repair or rebuild your home and pay for your living expenses until your home was habitable again. Moreover, you enjoy the security of liability protection. If you were sued, your home insurance coverage would pay for your legal counsel and handle any judgments issued against you.
Have you ever wondered how your house insurance rates are determined by insurance companies? Believe it or not, insurance providers don’t simply charge you some arbitrary number, they have a specific formula and set of guidelines they follow in calculating your rates. Once you know how insurance rates are determined, you can figure out about how much a policy should cost you or get ideas for lowering your current rates if you already have a policy. Here are some of the typical factors companies use in coming up with your home insurance rates.