The Main Factors Behind Your Premium
Home insurance premiums are priced based on a combination of your home’s rebuild cost, location, age, and claims history, along with the specific coverage limits and deductible you choose. Homes in areas prone to natural disasters — flooding, wildfires, or severe storms — typically carry higher premiums, and older homes can cost more to insure if their electrical, plumbing, or roofing systems haven’t been updated.
Key factors insurers weigh include:
- Rebuild cost — the primary driver of your coverage amount and premium
- Location — local risk of natural disasters and crime rates
- Home age and condition — older systems can increase risk and cost
- Deductible and coverage limits — a higher deductible typically lowers your premium
Our home insurance calculator gives you a personalized premium estimate based on these factors. Since rebuild cost is one of the biggest inputs, it’s worth checking our cost to rebuild home calculator first to make sure your coverage amount is accurate.