Factors Affecting Homeowners Insurance Rates

Insurance companies determine the criteria used to set homeowners insurance rates, so you may see a difference in quotes when your insurance agent helps you shop for coverage.
Balancing home and money

Contact RCU Insurance Services in Santa Rosa, California, today to learn more about homeowners insurance and get a quote.

How Insurers Determine Homeowners Insurance Premiums

Insurers use proprietary algorithms to help determine how likely you are to file a claim and estimate the size of a potential claim. They may use information about you, your household, your property and your policy to set your homeowners insurance rates.

The following factors typically impact your home insurance rates:

Marital status
Your home’s age and overall condition
Your policy’s deductible
Your home’s location
How much it may cost to replace your home after a covered event
Your credit history
Your claims history

Insurers use other factors to determine homeowners’ insurance rates, as well. Your home’s proximity to water, the type of pets you own and how close you are to a fire station are often overlooked factors that affect how much you’ll pay for homeowners insurance coverage.

You may pay more for insurance coverage if your home has “attractive nuisances.” These features may include treehouses, fountains, swimming pools, trampolines or anything that children may find appealing. Insurance companies call them attractive nuisances because they could attract uninvited guests, increasing the likelihood that someone could be injured while visiting your property.

What to Do if Your Homeowners Insurance Rates Increase

Your homeowners premiums could increase year-over-year for several reasons, many of which are outside of your control. Your agent can help you look at your current coverage and determine whether it’s time to shop around for a different policy.

Depending on the reasons behind your rate increase, you may be able to get a policy with lower premiums without giving up coverage.

Get the Homeowners Insurance You Need Today

Contact RCU Insurance Services today to learn more about how insurers set premiums and get the homeowners coverage you need.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.