How insurers think about price
A premium is the insurer's estimate of how likely you are to file a claim and how much that claim could cost. Anything that makes a loss more likely, or more expensive to repair, tends to raise the price. Anything that lowers that risk can bring it down.
Factors about the home
These describe the building itself. Some you can improve over time.
- Rebuild cost and size: what it would cost to rebuild the home, not its market value
- Roof age and material: older roofs are more likely to leak or fail in a storm
- Age of plumbing, wiring and heating: older systems can raise the risk of water damage or fire
- Construction type: brick, frame and other materials can be priced differently
- Distance to a fire station and hydrant
Factors about you
- Past claims on your policies, and sometimes on the home itself
- Credit-based insurance score, where state law allows it
- Your deductible: a higher deductible usually lowers the premium
- Your coverage limits and add-ons, such as higher liability or water backup coverage
Factors you can't change
Location plays a large part. Weather risk such as wind, hail, wildfire or flooding, local building costs, crime rates and distance to fire protection all feed into pricing. Rules on which factors insurers may use vary by state.
Features that can add risk
Some features raise liability or damage risk. They don't always raise your premium, but your carrier may ask about them, and some require extra steps.
- Pools, trampolines and hot tubs
- Wood stoves and fireplaces
- Certain dog breeds, with some carriers
- Running a business from home
Discounts to ask about
Discounts vary by carrier and state. These are common ones to ask about.
- Bundling home and auto
- A new or impact-resistant roof
- Monitored alarms, smoke detectors and water leak sensors
- A claims-free history
- Paying the full premium at once
Getting the right price
Choose coverage based on what it would cost to rebuild, not on the lowest price. Then compare quotes from more than one carrier and review your policy at renewal. CapCenter's insurance agency reviews your policy each renewal to help make sure you're not paying too much.
