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July 22, 2020

Why Are My Home Insurance Premiums So Expensive?

Looking At Costs

Owning a home is an expensive venture, and that doesn’t stop when it comes to homeowners insurance. There are many factors that can influence the cost of your home insurance rates beyond yearly increases. The average cost of home insurance is around $2,305 a year. This cost can be influenced by:


Home insurance rates vary between states and even zip codes. For example, the average cost of home insurance in North Carolina is around $2,009 a year, which is almost $300 less than the national average. This is due to the tax costs of the state, cost of living and the number of claims in the area. Areas that have a history of vandalism and theft may see higher costs for home insurance, for example.

Credit Score

A homeowner’s credit score is seen as an example of their reliability. Insurance agencies want to know that their clients will pay premiums on time as promised by their policy. A low credit score can cause your home insurance rates to go up. Thankfully, you can build your credit in order to lower your home insurance rates. Raise your credit by paying off debts and loans, such as credit cards and student debt.

Value Of The Home

Home insurance provides dwelling insurance for damage to the home due to fire, wind, hail, lightning, smoke, theft or vandalism. With dwelling insurance, it’s recommended that you purchase at least 80% of your home’s total replacement cost value in home insurance. So, the higher your home’s replacement cost value, the more you will pay for home insurance.

Physical Aspects Of The Home

The age and security of the home can also affect your home insurance premiums. Older homes, especially those with older roofs, may cost more to insure, due to the likelihood of filing a claim. A poor roof can even delay an insurance company from insuring you until the roof is repaired or replace.

Other aspects of the home that raise the risk of an accident can affect insurance rates as well. The further you are from a fire station, the higher your premiums are likely to be. If your home doesn’t have a fire system, has a pool or hot tub, or has a trampoline, your home insurance rates may be higher.

Don’t be discouraged by high rates. You do have some recourse! Be sure to ask your ACF Insurance agent about qualifying discounts.

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