It takes a huge amount of effort in setting up a home. The safety of it, thus, is a necessity. You need to get your home properly insured as disasters can befall anyone. A good insurance plan is what comes as a relief when tragedy strikes. There are a number of insurance covers for your home depending upon its features. With so many options to choose from, one is bound to get confused. Following is a list of important factors that determine your choice of an insurance plan for your home.

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1    The house itself: The size and structure of your house directly affect its premium rates. Bigger houses, obviously, have a greater insurance plan to cover in comparison to the small ones. As the rates of premium are decided on the basis of costs of restoration in case of disasters or accidents, the age of your house is also an important factor as the older the home, greater is its risk of damage, and hence it is costlier to insure.

2.    A trustworthy company: You cannot simply quote an insurance plan with the first company that comes your way. It is necessary to search for insurance companies, compare their insurance covers, and decide accordingly. How much time does a company take in responding to a claim well determines its worth. Insurance companies like AIG have been around for some time now and promise one the best of services.

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3.   Safety of your locality: The higher risk you pose to the insurance company, higher will be your premium rates. Hence they take things like the area you live in into account while deciding your insurance cover. If your locality has frequent cases of theft, you will have a greater amount to cover for. Things like distance of the police station, hospital, and fire station from your house also affect your premium rates.

4.   Get your facts right: When it comes to home insurance, many make the mistake of choosing the cheapest home insurance plan. While you need to go for plans that suit your budget, what you really require is a plan with greater cover. It might seem to be a little hard on pocket initially, but will ensure you relief in the long run.

5.  Your housing history: Multiple claims on your house do not make a great impression in front of insurers. Try keeping your record as clean as possible by fixing minor failures yourself, for lower premium rates.