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13 Factors That May Affect Your Home Insurance Rates


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Every homeowner who’s looking to purchase home insurance will always try to find the best possible rates. However, home insurance rates depend on a variety of factors. Let’s take a look at some of the considerations insurers make when finalizing how much you’ll have to pay for your homeowners’ insurance policy.

1. Your Home’s Location

Are you living in a city or town where the crime rate is high? Is your home a long way from a fire station or a fire hydrant? If your answer to both questions is in the affirmative, then you can expect to be charged higher home insurance rates.

2. Your Home State

Since average home insurance premiums differ from one state to another, you can consider yourself fortunate if you live in a state where home insurance rates are comparatively lower. Delaware homeowners, for example, only have to pay an average of $598 a year for home insurance, according to ValuePenguin. That’s a far cry from the $2,559 average home insurance cost in Oklahoma.

3. The Weather

If your state is prone to hurricanes, hailstorms, tornados, and other catastrophic natural disasters, then you can expect to pay steeper home insurance premiums.

4. Your Deductible

If you’re willing to pay a higher deductible—the amount you initially shell out when filing a claim—your insurance provider will likely charge you lower premiums. The opposite is true if your deductible is low.

5. Your Home’s Age

Higher insurance rates are likely if the home you’re insuring has been standing for some time. After all, the risk of damage—and, therefore, claims—is higher when the electrical wiring, plumbing, and other systems of your home are aging, too.

6. Risk Factors Within Your Property

What do swimming pools, trampolines, and wood-fired stoves have in common? They’re all risk factors within your property as far as insurers are concerned. So, if you have any or all three in your home, expect to pay higher rates for your home insurance.

7. The Material Used When Building Your Home

If your home is made of wood, its susceptibility to termites, water damage, and fire will probably send your home insurance rates soaring. People who own sturdy brick houses, on the other hand, will likely get better rates from insurers.

8. Your Dog’s Breed

Many insurance providers take the breed of the dogs you have at home into consideration when determining your insurance rates. Some breeds have a reputation for being more aggressive than others, which raises the risk of people filing a liability claim, a feature of any standard home insurance policy.

9. The Presence (or absence) of Safety & Security Measures

Insurers will check to see if your home has security systems, fire alarms, smoke detectors, and other safety measures. Fingers crossed that you never experienced fire damage to your home before. Your home insurance rates could be lower if you had them installed before purchasing home insurance.

10. Your Preferred Level of Coverage

Your home insurance rates will always go with the level of coverage you want. Higher coverage limits mean higher premiums, after all.

11. Whether You’re Married or Single

When you’re a single homeowner, don’t be surprised if your premiums are higher than usual because insurance providers typically associate singlehood with a reduced chance of being home to alert authorities about a fire or a burglary.

12. How Often You Make Claims

The more frequently you file a home insurance claim, the higher your rates will likely be. As much as possible, refrain from filing claims for relatively minor damages to your home. Better fix them yourself or call the right professionals for the job.

13. Your Credit Score

A low credit score will always haunt you wherever you go, even when you’re buying home insurance. A good credit score means great home insurance rates and even discounts. On the other hand, poor credit can prevent you from getting the policy you want or even get insurers to decline to offer you a policy. These are just some of the factors that insurers consider when figuring out how much to charge you for home insurance.

Talk to your insurance agent, and find out how much your home insurance will cost you based on where you stand relative to the factors mentioned above.