When home insurance companies are calculating the rate you will be charged, they take a wide array of factors into consideration. For both budgeting and safety purposes, it's important to understand the various elements that could impact your rate. Below, three of the factors that figure into home insurance rates are discussed in more depth.

Home Insurance: 3 Factors That Influence Your Rates

1. Cost to Rebuild

Adjusters will look at the size of your home and the materials used to build it in helping them arrive at an appropriate rate of coverage. Obviously, a one-bedroom, wood-frame home is going to cost less to rebuild than a five-bedroom estate. Similarly, the types of claims that are common in your neighborhood may also impact your rate since rebuilding costs can vary greatly between different regions of a city or state.

2. The Coverage You Choose

If you choose the most basic home insurance coverage allowable under the law, you are going to pay a lower rate than if you choose a more elaborate protection package. Going with the cheapest option may sound tempting, especially if you're living on a tight budget, but it's wise to remember you get what you pay for. If disaster strikes and you're without adequate coverage, you could end up homeless or in bankruptcy. Weigh all of your coverage options carefully, and choose the one that offers the most protection for you and your family.

3. The Age of Your Home

Older homes can be architectural marvels. They are also often built in accordance with outdated and potentially dangerous building codes and standards, meaning you could very well require higher insurance premiums to provide sufficient safeguards. In general, newer homes tend to have lower insurance rates than older homes.

Kramer-Myers & Werring-Dickerson Insurance is a home insurance agency that has served the Batavia, Ohio, area since 1960. Call (513) 732-1461, visit their website, or connect with them on Facebook or Google+ to arrange for a home insurance quote. By recognizing the factors that go into calculating your home insurance rate, you can prepare your budget accordingly and ensure your home and family are protected.