Buying a home is one of the biggest, if not the biggest purchase and investment someone could make. Not only is it a space to keep you warm, it serves as the setting for so many memories to come whether it is growing your family, celebrating holidays or just enjoying the company of those you surround yourself with. Your most valuable possessions are kept in the confides of a house, wouldn’t you want those protected? A homeowners policy; the right policy is crucial in keeping you protected. There are many different factors that go into what makes up home insurance rates premiums from location, credit and even the ins-and-outs of the home itself.

Factors that go into home insurance rates


The location of one’s home is going to be a contributing factor for multiple reasons. Rates vary from not just state-to-state but also from zip code-to zip code. If your home is located in or around areas that could be recognized as an area common to crime, theft or vandalism, prone to perils or weather-related events like tornadoes or hurricanes you could see a higher premium, due to risk.

Location could also have a positive affect, if you are in a low-risk area for weather damage or an area crime does not effect often.

In the case of your home being damaged, location could also be used in determining the replacement cost of your home, construction costs such as material and labor often varies from state and area.


Insurers can use the credit-based insurance score as a factor when assessing the risk level they are taking on when writing a policy. Those with a high credit-based insurance score could be looked at as a lower risk to the company, resulting in a lower rate. Someone with a lower score would be perceived as a higher risk to the insurance company – more of a risk, higher rate.

Credit history is often times looked as a judgement on the likeliness that the insured will make premium payments on time. It is also something they take into consideration when thinking about the possibility of a claim being filed; insurers sometimes feel that homeowners with poor credit are more likely to file claims under their policy than homeowners who have very good credit.

Credit is not the only thing that is taken into consideration when a rate is made, so if you do not have the best credit do not be discouraged.


Previous claims that have been filed within a certain frame of time leading up to your new policy could be taken into consideration when calculating your rate.

Once a homeowner files a claim, their homeowners insurance company assumes that this one, won’t be their last. In having a history with filing claims – even small ones, could indicate a risk for future greater-sized claims. Meaning a greater risk for the insurance companies. In calculating your rate, they could take into account previous claims: personal, auto and past property too.

Age of the home

Older homes tend to have a higher rate cost due to the fact that their structures and systems have been through decades or even centuries of wear and tear; they tend to be prone to having issues. During home inspections it could come to light that the home is not up to code, if you do any rebuilding it could be brought up during then as well – which would then need to be assess and taken care of.

When looking for a homeowner’s policy for your older home – you may want to consider adding ordinance or law coverage.¬†This specific kind of coverage is used to cover the cost of rebuilding a home that has been destroyed and also to upgrade the home in order for it to meet the most up-to-date building code after covered loss.

In case of making any upgrades or relevant updates to the home – you would need to contact and notify your professional agent in case your policy has to reflect the changes.


The deductible is the set amount of money that you will/ could pay out of pocket in a covered claim. A higher deductible could decrease your premium but it could result in you paying more out of pocket. On the other hand, a higher premium could mean a lower deductible.

Dwelling coverage

Your dwelling coverage is the portion of your homeowners insurance policy that is designed to cover your home’s structure – in case of damage.

You may be asked if you want this coverage at replacement cost value – coverage to rebuild the home and replace belongings at today’s cost. Or actual cash value – which takes into account depreciation and pays out to rebuild the home or replace items at their current value.

If choosing replacement cost value, you may likely see an increase in your premium. However, this could provide more financial protection in the case of a covered event occurs.

Other factors that could have an affect on your homeowners insurance rates

  • Type of homeowners policy
  • Distance from the water
  • Distance from a fire station
  • If you have a dog/ the dog breed itself

No one wants to think about the “what if” especially when it comes to their home. It is imperative that you have the correct full coverage in order to protect your home, belongings and family in case the “what if” becomes “what now”.

Have any questions about homeowners insurance? In need of changing or upgrading your policy? Adding more coverage or want a second look to see how we can maximize your homeowners insurance? Contact us today!


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