When buying a home you think about the mortgage and the bills associated with owning a home. But, just as important, is to figure out what your homeowners insurance will cost.

It's especially important to figure out the cost of homeowners insurance to get an accurate budget of your living expenses.

The simple answer is that it depends. There are several factors that can determine how much you will pay for your homeowners insurance.

Just like with a car, your deductible will impact the cost of your homeowners insurance. If you pick a plan with a high deductible, the annual premium for your insurance coverage most likely will be lower. However, if you have to make a claim for repairs to your home, your out-of-pocket cost will be higher too. On the other hand, a low deductible will cost you more up front, but you will pay a smaller amount if you have a claim.

If you're buying an insurance policy to cover a home that's worth $250,000, you're going to pay more than someone whose home is worth half that amount. A solid assessment of what your home is worth will help determine the right amount of coverage you need.

The value of your personal belongings also have a lot to do with the value of your home. If you're living in a home worth $150,000, but your belongings are worth $50,000, you will will want a policy that covers both these amounts. Otherwise, if something happens, you could still be at a loss, even with insurance coverage.

Unfortunately, the price you pay for homeowners coverage can also be affected by your past insurance history. Homeowners who had fewer claims typically pay less for insurance than those who have more claims. One of the considerations that all insurers have to keep in mind is your level of risk to the insurance company.

• Are you buying an older home or a new home? That too will impact your policy.  
• Is your electrical and plumbing reliable?  
• Is the house built to specific codes for maximum safety?
• Do you own a dog? If so, what breed?

There's so much that goes into determining the cost of homeowners insurance. It's definitely worth contacting us to help determine the coverage that is right for you and within your budget.