It is well known that there are many different factors that contribute to your home insurance rates. Some of these factors are well-known considerations like location and home value, or very obscure aspects, like the materials that your home is made out of, or if your home has an alarm system. Because there are so many contributing factors, it is important to understand the main ones that will have the biggest impact on your home insurance, especially for homes located right here in Lebanon County. Let’s look at the top 5 factors for Lebanon County home insurance.
1. Home Value
While it might be obvious that the value of your home plays a large role in determining your home insurance rate, there are many things to consider within just this category. It’s easy to notice that a $150,000 home will be cheaper to insure than a $400,000 home, but it’s not necessarily the sticker cost that makes the difference.
When looking at how much to charge you for homeowner’s insurance, companies will look at the replacement cost of your home. Should your home be destroyed in an accident or natural disaster, this is how much it will cost the insurance company to give you what you need to replace your old home as close as you can. The replacement cost takes many aspects of your home into consideration, such as the material it is made out of (wood, brick, stone), square footage, and even the current real estate market. While the overall dollar value of your home certainly makes a big difference for insurance prices, there are even more components of your house that play a role.
Check out our guide on how to lower the value of your home for cheaper insurance.
2. Home System Age/Upgrades
Homeowners insurance is also affected by how new certain components of your home are, and what kind of upgrades you have done to it. In addition to the replacement cost of your home, insurance companies will look at the state of some of your home systems to determine both the cost of replacing them and the risk that they could fail and cause major damage. Some of these systems include HVAC, electrical, and plumbing. These can also include the age of major structural components of the home, like how new the roof is or the age of your foundation. The newer they are, the cheaper your home insurance will be.
Additionally, insurance rates can depend on what upgrades you have made to your home and property. Installing safety features like new smoke alarms or an advanced security system can reduce the risk of a costly break-in, which makes insurance companies likely to give a slight discount. On the other hand, having a trampoline or pool can increase your risk of liability, which could make your rates shoot up.
3. Rural vs Urban Home
Your home’s location, and more specifically the environment around it, is another big factor in determining your home insurance rates. While being located in a city like Lebanon can provide some insurance-reducing benefits like proximity to a fire station and lower chances of tree or wind damage, it also has characteristics likely to increase costs like higher crime rates and an increased risk of damage from neighbors. Insurance companies will balance these costs and benefits when determining your homeowner’s insurance rates.
4. Your Claim History & Credit Score
Your personal credit history and record of insurance claims are another important factor that insurance companies will look at when determining your rates. Insurance firms will look at your credit score to determine how likely you are to pay on time and if you tend to borrow a lot. Your claims history will also tell insurance companies how likely they are to have to process your claim and potentially give you a large payout. The more claims you have and the worse your credit is, the higher your homeowner’s rates may be.
5. Proximity To Natural Hazards
Lebanon County has many natural hazards specific to the area. For example, the risk of sinkholes in Palmyra and all of Lebanon County is much higher than in other counties nearby. Additionally, the unpredictable Pennsylvania climate can cause heavy rains that lead to flooding for homes that are near creeks or rivers. These natural risks can either increase your general homeowner’s rates or require you to purchase a separate flood insurance or sinkhole insurance policy.
To Find The Perfect Homeowner’s Policy For Your Lebanon County Home, Contact Strickler Insurance
Strickler Insurance knows how hard it can be to navigate all of these different cost factors, which is why we are here to help homeowners find the perfect policy for their unique needs. With over 150 years of assisting Lebanon, PA families, you can be sure that we will find the homeowner’s insurance, automobile insurance, life insurance, and other insurance policies that fit your budget and coverage needs.
Contact Strickler Insurance to speak with our team, and see how we can get you the insurance you need.
