Generic selectors
Exact matches only
Search in title
Search in content
Post Type Selectors

What Factors Affect Home Insurance Rates

Experts agree that every homeowner needs to have a home…
a person holding a phone

Experts agree that every homeowner needs to have a home insurance policy. Home insurance covers your house, belongings, and additional buildings on the property. If something unexpected like a fire, natural disaster, home burglary, or other event occurs, your home insurance policy will protect you from financial losses and help repair or replace your property. If you don’t purchase a home insurance policy, you are leaving one of your most expensive assets at risk. Even if you are willing to assume that risk, however, your mortgage lender usually will not. If you are financing your home, your lender will usually require a valid insurance policy for the loan duration.

Even though home insurance is essential protection that is important for all homeowners, getting the right coverage can be expensive. Nationwide, the average cost of homeowner’s insurance is about $1,200. However, costs can vary widely. You may have to pay significantly more or less for coverage depending on several factors. Like other types of insurance, the rate you pay for home coverage will be based on your risks as a policyholder. The insurer will look at your home and situation to determine your policy rates.

Understanding home insurance and how your rates are determined will help you find the right policy for your needs. Doing some research with a source like will help you understand the latest homeowner’s insurance trends and products. Shopping around for your policy will be the best way to find what you need. Let’s take a look at some of the factors that affect your home insurance rates.



Where you live will have one of the biggest impacts on your home insurance rates. Factors like climate and the likelihood of natural disasters will determine the risk to insurance companies. Homeowners in areas where damaging storms and rain are more common typically pay more for insurance than those in other areas. For example, homeowners in Louisana pay almost three times as much for insurance premiums as those who live in Oregon. This is a direct result of the threat of hurricanes throughout the summer season.

Local factors in each state could also impact home insurance rates. Depending on your ZIP code and city, you may pay more or less than someone living in another part of your state. Home prices and values are typically higher in cities than in rural areas, and home insurance rates tend to be higher in these areas as well. Other factors like crime and your proximity to a fire department could also impact your rates.

Home Value


The value of your home will also play a key role in determining your insurance rates. In general, more expensive homes cost more to insure as there will be more to rebuild or repair. This factor is the same for older homes and newer ones as well. An antique home that has risen in value will be difficult to repair or replace and will cost more to insure. Similarly, an all-brick modern home with upgraded options and luxury finishes will also be more expensive to rebuild. Local construction costs, type of construction, style of the home, and custom features that impact the value of your home will factor into the price you pay for your insurance.

While the location and value of your home will have major impacts on your home insurance, other factors will also be considered. Things such as the condition of your home, security and safety features, and credit history will also have an impact on the amount you pay for insurance. Comparison shopping from several insurers will help you find the best policies and rates for your needs.