Home insurance offers a range of covers to protect you from damages and theft affecting both your property and possessions. The amount you choose to insure depends on the value of your home and what’s inside, which also plays a part in determining your premium. Other factors can influence what you’ll pay, and we’re here to help you understand those so you can find ways to save on your premiums.

The location of where the building is a big factor in determining the premium price. This is a factor because the location of the building will have historical data of certain mishaps such as floods, fires, and other natural disasters. The next part of the location will be the crime rate in that specific area. This will have a huge part to play in your premium.

The next factor to consider that will affect your monthly premium is the value and condition of the property. The age of the property such as the materials and wear and tear will affect the quote on the premium. The building materials used can pose certain risks on a property such as a thatch roof will have a higher risk for fires than others and the level of risk will determine the value of your premium. The age of the building will also show a risk level because the older the building the more maintenance will be required, and this will affect your premium.

The next factor to discuss will help reduce your premium amount. The security you use and how much security you install will determine your premium amount. The security level will pose at the risk of someone breaking into your property and stealing. The lower the risk of theft, the premium value will also be reduced. Security features will include options such as alarms, fences, bars, electric fencing, beams, will all help reduce the risk of theft.

Claims are past occasions that you have claimed from your insurance company for certain property damages or theft. This places a huge holding on your home insurance premium because the more you tend to claim the riskier your property becomes to insure and therefore the premium will go up with the claim. The flip side is that if you do not claim over a certain period, it can also help reduce your premium amount because you don’t show a risk towards the insurance company.

Excess is a fixed amount that you will pay when you make a claim with your insurance company. The excess amount varies and can change your premium amount because the more excess you’re willing to pay will also reduce the amount of your premium.

These factors can make all the difference when it comes to navigating home insurance. Understanding them will help you find ways to lower your premiums, and if you’re planning to buy property in the future, keeping these in mind can save you on insurance costs down the road. Your home is where your heart is, and we are the financial bestie that can help you protect it.