All homeowners want to know how to lower their homeowners insurance premium rates and save money. No one wants to pay more than they have to. In order to lower your premiums, you need to understand how premiums are calculated.

What causes high homeowners insurance premiums? 

The biggest risk here is something that you can control: home repairs. If your home needs repairs, it can cost you. The age of your roof, trees hanging over your house and uneven sidewalks, among other things, can all add up. To help lower your home insurance premiums, make repairs and keep your house in good condition.  

Insurance companies don’t typically release their exact formulas for determining premiums, though the following items are all considered to an extent: 

• Policy’s deductible 
• Policy’s amount of coverage 
• House’s replacement cost 
• House’s age and condition 
• House’s location
• House’s safety and security features 
• Policyholder’s insurance claims history 
• Policyholder’s marital status 
• Policyholder’s credit history 
• Policyholder’s additional coverages

Favorable risk factors translate to better rates.