4 Factors That Might Make Your Home Hard to Insure

Homeowners insurance is a necessary purchase that can save you a lot of money if the worst happens. And if you're buying a home with a mortgage loan, you'll be required to purchase a policy (and it's HIGHLY recommended that you buy one even if paying for a home outright with cash).

Unfortunately, getting a homeowners policy isn't always cheap or easy, and it all has to do with your home. Let's take a look at some factors that could make it more difficult to find the most affordable homeowners insurance policy.

1. Where you live

When it comes to real estate, the three most important things are location, location, and location. This is also true of homeowners insurance policies and how much they'll cost -- or even whether you can get coverage at all. Some major insurers are no longer writing policies in states prone to expensive natural disasters. Since these are on the rise thanks to climate change, if you live in a state like hurricane-battered Florida or wildfire-ridden California, it's likely that you'll have to spend more and perhaps do more legwork to put a policy in place.

Even if you live in a state without this degree of extreme weather, you might find coverage more expensive or hard to come by if you live in an area with higher crime rates. Insurers might also consider your proximity to police and fire stations when writing a policy. According to Bob Vila, a homeowners insurance policy could be 4% cheaper if you live near a fire station.

2. The size of your home

It stands to reason that a larger home (or one with more buildings on the property, like a detached garage) will be more expensive to insure than a smaller one. If the home is completely destroyed, it'll be a lot more costly for an insurer to rebuild a larger house and other structures on the property. The cost of rebuilding and repairs also varies from place to place.

3. Your home's age

An older home will come with higher insurance bills because components of a house don't last forever. If you buy new construction, it could be many years before you have to file a claim on your home. But if you buy a century-old home, it'll come with a whole history, and that might include an older roof, home systems in disrepair, and other expensive surprises. According to Experian, insurance coverage for a home that's more than 30 years old is 75% more expensive than that for a new home.

4. Any extra risks on your property

Got an aggressive dog? How about a swimming pool? Any aspect of your home (or the beings that dwell within) that is considered potentially dangerous can raise the cost of your insurance or make it difficult to find decent coverage. If your dog bites someone, that could result in a homeowners insurance claim for damages. A swimming pool is an "attractive nuisance" and you might need more liability coverage in case someone gets hurt.

How can you save on homeowners insurance?

Now that you know some of the reasons it might be difficult or more costly to get coverage, you're probably wondering if it's possible to cut some of your costs. Here are a few things to try:

• Shop around: Talking to multiple insurance companies and getting multiple quotes is the easiest and most effective way to save. If you go with the first insurer you get a quote from, you could miss out on a less costly policy from another company. But you won't know if you don't shop around.
• Ask about discounts: There are lots of home insurance discounts out there. Are you a veteran? Can you bundle your homeowners policy with an auto policy? Maybe you're a member of a specific professional group. Ask your insurer what you might qualify for.
• Lower your risk: If you take steps to make your home safer (such as by upgrading old electrical wiring or installing a fire sprinkler system), you could save. Similarly, you can take steps to get your home ready for natural disasters, like hurricanes.
• Raise your deductible: Raising your home insurance deductible from say, $500, to $1,000 per claim should save you money on your premiums.

If you're struggling to find affordable coverage, take the above steps and see how you fare. If it's proving impossible, you might need to turn to your state for help. States offer FAIR (or Fair Access to Insurance Requirements) plans, which can help you get insured -- these may be more expensive than a regular homeowners policy and may cover less, but homeowners insurance is too important to forgo altogether.