Paranormal horror novels create fear in multiple ways. Firstly, they can use the idea of inescapable doom. In 'The Shining', the family is trapped in the hotel with the ghosts. Secondly, the distortion of reality. In 'The Haunting of Hill House', the house seems to have a mind of its own and bends the laws of nature. And thirdly, the threat to the characters' very souls or sanity, as seen in 'Dracula' where the vampire threatens to turn people into his undead slaves.
They often use atmosphere. In 'It', Stephen King describes the sewers and the town of Derry in a way that makes them seem menacing. The isolation, the strange noises, and the lurking presence all contribute to the fear. Also, the use of psychological elements like the characters' fears and traumas. In 'Rosemary's Baby', Rosemary's growing paranoia about her pregnancy adds to the overall sense of dread.