A lot of new homeowners aren’t too familiar with the terms of homeowner’s insurance, only with the fact that it’s a good idea to have it (and that it’s required if they are taking out a mortgage). One thing that you should be aware of is that the premiums you start off with may change from year to year. The following are a few things that can affect your homeowners insurance premiums:
- Location – If the location of your home becomes more prone to certain natural disasters, such as wildfires or tornadoes, your premiums may go up to reflect this.
- Age – No, not your age – but the age of the home. As a house grows older, it will eventually become more susceptible to damage. Your roof, electrical system, heating and cooling system and more will be more prone to damage, which means your house will cost more to insure.
- Additions – If you build onto your home or add features, such as a swimming pool, your insurance will increase in cost in order to increase your coverage.