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Cost Factors

Are you overpaying for homeowners insurance? Every policyholder dreads the day they have to file a claim. At Avner Gat, we understand that you want to be sure you’re covered, but you don’t want to pay for more protection than you need. Typically, when you purchase an insurance policy, your agent or broker will explain the reasoning behind your rate. For example, when you purchase auto insurance, your policy might be more expensive based on previous accidents and police reports. Unfortunately, when it comes to homeowners insurance, many people are not fully aware of the factors that influence homeowners insurance cost.

Whether you’ve renewed an existing policy for years or whether you’re shopping for coverage, we’ve compiled a list of factors that can influence your homeowners insurance cost:


The size of your home is an important factor in determining your insurance costs because the additional space means more room for accidents! Moreover, the materials used in the construction of your home can also impact policy cost. If your home was built with expensive, premium materials, the insurance cost will rise.


In addition to the size, the age of your home is a sticking point for many people. Older homes are more susceptible to wear and tear. If your home was built more recently, you can expect to see a lower premium.


It may surprise you to know that your furry family members can drive up the cost of homeowners insurance! Certain large dog breeds such as Pitbull can raise your rates because the insurance company doesn’t want to cover any accidents or bites. It’s important to inform your insurance company of any pets you have because they may not cover accidents resulting from an undeclared animal.


When you willingly take on a higher deductible, it shows the insurance company that you’re serious about protecting and caring for your home. If you choose to take on more financial responsibility and increase your deductible, you may be able to lower your monthly premiums.


Did you know that your credit score can lower your insurance rates? Some companies believe that people with a higher credit score are more likely to perform regular maintenance on their property. You may also notice lower rates if you participate in incentive programs. Many insurers offer discounts for purchasing other policies with them, such as auto insurance.


Have you filed a claim before? If you’ve already used your policy to file a claim, there’s a good chance that it will raise the cost of your policy. Some homeowners will choose not to make claims for smaller accidents to avoid this consequence.

It’s a good idea to review your policy every year and ensure you have proper coverage. As you perform repairs and renovations, the value of your home can fluctuate. Furthermore, you can even see changes in property value as your neighborhood expands and grows. In turn, this can alter the replacement cost outlined in your policy. Periodic review is a great strategy to make sure you’re not caught off guard in the event of an accident.


Homeowners Insurance Policies are very difficult to understand. The wording used by insurance companies on their policies might be very confusing to those without experience reading and interpreting such documents.

We recommend buying a homeowners insurance policy from an established insurance agent!