Five Factors Influencing Home Insurance Rates

Five Factors Influencing Home Insurance Rates

Taking the mystery out of homeowners’ insurance can start with understanding the factors that impact home insurance rates. If you’ve ever wondered why your cousin Bob pays less for home insurance than you do, it could have to do with one or more of these five factors.

Property Location

A major factor affecting home insurance rates is the location of the home. Not just the neighborhood, but the terrain and risks of natural disasters. Rates may also be impacted by the proximity of the nearest fire department and even fire hydrants.

Price, Value, Replacement Costs

The cost of your home and what it would cost to replace it in a total loss plays a large role in the rates one pays. This value can be impacted by square footage, building materials, features, and amenities as well as where it is located.

Coverage Limits

Generally speaking, the higher your coverage limits, the more home insurance will cost. This includes structures, contents, and liability coverage. An independent insurance agent can help you determine what a reasonable amount of coverage for your situation is.

Deductible

Your home insurance deductible amount is the amount of money you pay out of pocket for a covered loss before your insurance policy proceeds kick in. The larger the deductible, the lower the premiums may be.

Age and Condition

As construction techniques and building codes have improved, so has the general safety of homes. This is why it can be cheaper to insure a new home than a vintage one. Older homes can have older plumbing, out-of-date wiring, and roofs that may soon need replacement. Some properties may be uninsurable unless some basic improvements are made.

While insurance companies use similar factors in determining rates, the weight they place on each factor can be different. This is why it is important to compare when shopping for home insurance. Our independent insurance agents can assist you. They can reach out to a number of companies to find the coverage and premium you are comfortable with. Contact us today to get started.


Do you have questions about your insurance? Find an insurance agent near you with our Agent Finder

Buzz Your
Insurance Agent

Search for a local agent with our agent finder map.

Agent Finder

Search All Blogs

Generic filters
Exact matches only
Search in title
Search in content
Search in excerpt

Buzz Your
Insurance Agent

Search for a local agent with our agent finder map.

Agent Finder

Want to learn more about our blog writer?

Read more about KayLynn's background.

Click Here

Search All Blogs

Generic filters
Exact matches only
Search in title
Search in content
Search in excerpt

Gone But Not Forgotten: The Era of the Full-Service Station

A Blast from the Past: Remembering the Golden Age of Full-Service Gas Stations

Selling Your House? Navigate the Maze with These 4 Options

Unveiling the Maze of Selling Your Home: Realtors, Discount Brokers, FSBO, and Cash Buyers

Beyond the Buzzer: Fun & Funky Facts About Your Favorite Game Shows!

From Heavy Wheels to Sneaky Buzzer Tricks: Unveiling the Secrets of Game Show Production

Home Office Hustle: When Working Remote Turns into Running a Business

Working from Home or Running a Business? How to Tell (and How to Insure Yourself)

Life Insurance Claims: Demystifying the Process (So You Can Get What You’re Owed)

Life Insurance Claims: A Simple Guide to Getting What You Deserve

Selling Your Used Car? Polish It Up, Snap It Up, and Sell It Smart!

Conquering the Used Car Sale: A Guide to Getting Top Dollar

Curb Appeal on a Budget: From Bland Yard to Backyard Bliss

Landscaping Magic: Unveiling the Budget-Friendly Path to a Stunning Home Exterior

Beyond “Hey Jude”: Decoding the Inspiration Behind Beatles Classics

From Bathroom Window Break-Ins to Beer Heirs: The Untold Stories Behind Beloved Beatles Songs

Building Your Business Dream? Don’t Forget the Safety Net: Protecting Your Thriving Venture

From Market Mayhem to Natural Disasters: How to Protect Your Thriving Business

Life Changes? Don’t Forget Your Life Insurance! A Guide to Keeping Your Beneficiaries Up-to-Date

Life’s Milestones and Your Life Insurance Beneficiary: Why Regular Reviews Are Crucial