What factors do home insurance companies consider when setting premiums?

I'm trying to guess how much I'll end up paying for insurance for my new home. What factors are at play when setting premiums?

Answer

There are many different factors that are taken into consideration when an insurance company is coming up with your premium, such as the age of your house, the materials used to build your house, the roof type and age of your roof, any updates that might have been made to your home, your credit score, home security systems, and claims.

There are also liability exposures that can cause you to have higher premiums, such as owning a dog or having a swimming pool and/or trampoline.

Alexah Grinnell

Answered on Mar 12, 2021

Alexah Grinnell has been working in the insurance industry for 5 years with a primary focus of coverage consulting in the sales department. She has been working for Jerry Insurance since July of 2019 and has also has experience working for AAA and State Farm. She currently lives in Rochester, NY with her husband and 3 kids

Did this answer help you?

Ask us a question by email and we will respond within a few days.

Have a different question?

You can meet us at our office and discuss the details of your question.

How do adjusters decide how much to pay out for home insurance claims?

I'm planning to file a claim for some damage to my detached garage and shed. This has me wondering how adjusters settle claims.

Alexah Grinnell

What does homeowners insurance cover?

My partner and I are shopping for our first home. Neither of us is well-versed in home insurance. What kind of coverage does it offer?

What deductible should I have on my home insurance policy?

I'm in the process of buying home insurance, but I'm not sure what the deductible should be. Are there any rules or ideas on how high or low your deductible should be?

How Much Homeowner's Insurance Do You Really Need?

In determining the limits and deductibles for your homeowner’s insurance policy, here's what you need to keep in mind.

How Does Hazard Insurance Differ from Homeowners Insurance?

What is hazard insurance, and how does it differ from homeowners insurance? Here’s what you need to know.

What Is Functional Replacement Cost on a Homeowners Insurance Policy?

What does functional replacement cost mean? Essentially, functional replacements are when your carrier replaces damaged items with items of the same functional value.

Read advice from car experts at Jerry

What others are asking

Will a non owners policy be the right insurance for a car that I am borrowing?

I am from Connecticut and will be living in Alaska for just the summer this year. My aunt will let me borrow her truck so I have a vehicle to get around in. It is covered on her policy, but she wants me to get a non-owner policy so that I am insured. How do I get it and for what state?

Do homeowners insurance policies cover power surges?

Would my insurance cover the repairs to our new stove? We had a storm that caused power surges and outages. Our stove was damaged in a power surge prior to losing power.

Is a AAA membership worth the price?

"I keep getting letters from AAA about introductory rates, but I'm not sure if it's worth it. Is a AAA membership a good buy?"

Browse All Questions

Easiest way to compare and buy car insurance

No long forms

No spam or unwanted phone calls

Quotes from top insurance companies

Find insurance savings — it's 100% free

Compare Car Insurance for Your State

Car insurance quotes in Arkansas

Car insurance quotes in Connecticut

Car insurance quotes in Utah

Car insurance quotes in Massachusetts

Car insurance quotes in District Of Columbia

Resources

Car Insurance by Make

Car Insurance by State

AL AK AZ AR CA CO CT DE FL GA HI ID IL IN IA KS KY LA ME MD MA MI MN MS MO MT NE NV NH NJ NM NY NC ND OH OK OR PA RI SC SD TN TX UT VT VA WA WV WI WY

Never overpay for car insurance

Jerry automatically shops for your insurance before every renewal. Members save $872/year.

Close Signup Banner