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6 Factors That Influence Your Home Insurance Quote



Home insurance is a must-have for any residential property owner. Your home is one of your biggest assets, and a good insurance policy will protect you from financial losses outside of your control. Yet, the cost of home insurance varies widely from homeowner to homeowner.

Your insurance provider will quote you based on the specifics of your home and your situation. But what do they take into account when compiling a quote? It’s not random. Here are six factors that can influence the home insurance rate you’re quoted.

Home’s Age and Condition

The first factor that will affect your home insurance quote is the quality and condition of the building you’re trying to insure. When applying for home insurance, you’ll need to answer questions about when the home was first built and the maintenance that has been done on it over the years. Newer homes that are more structurally sound typically come with lower insurance costs.

This is because newer homes are much more equipped to withstand damage. For example, a new build using high-quality roofing and siding is much more likely to survive a tornado or hurricane than an older home without these protections. Maintenance plays a part in your quote as well. Even if your home is relatively new, you could still end up with a high insurance premium if the previous owner did not keep the home in good condition.


Your location also plays a huge part in calculating your home insurance costs. This is because different locations come with different risk factors. For example, a home located right on the beach could be expensive to insure due to the high risk of flooding and hurricanes. Similarly, places like southern California and Oklahoma often come with increased insurance costs due to the frequency of wildfires and tornadoes.

Two similar homes within the same city could even have different home insurance costs due to their exact location. Many insurance companies will consider your proximity to a fire station when giving a home insurance quote. If rates of theft and vandalism are high in your neighborhood, this could influence your quote as well.

Type of Policy

There are several different types of home insurance policies. Some policies just cover the value of the building, while others cover your belongings as well. You can also add liability coverage, which protects you if someone is hurt on your property and tries to take legal action. Some providers also offer even more add-ons and customizable features.

The more complex and comprehensive your policy is, the more it will cost. This is because the insurer is making a bigger financial commitment in these situations. However, many homeowners find that the extra coverage is worth the cost due to the added peace of mind it brings.

Credit Score

As with many major financial commitments, your credit score and history could influence the amount you pay. Your home insurance provider will run a comprehensive credit report before providing you with a quote. They’ll use this information to assess whether you’re likely to pay your monthly premiums on time. In most cases, requesting a home insurance quote won’t negatively affect your credit score for the future, since it’s considered a “soft inquiry.”

If you have a particularly good credit score, your insurance provider might be inclined to offer you lower premiums. If your credit score is very low, you may need to pay higher premiums or a higher deductible to secure insurance. However, an increasing number of states are making it illegal for insurance providers to look at your credit score when providing a quote. If you live in one of these states, your credit history won’t be factored into your insurance costs.

Deductible Amount

The amount you pay before your home insurance kicks in is the deductible amount. For example, if you make a claim for $100,000 after a fire, but have a $1,000 deductible, you’d need to pay the $1,000 first in order to access your policy information. The higher your deductible, the lower your monthly premiums will be.

Increasing your deductible is often recommended as a way to lower your monthly home insurance costs. However, a high deductible can make things more challenging in the event of an emergency, so it’s important to tread carefully here. It’s wise to put some money in savings each month, so your emergency fund could cover the deductible price, if needed.

Claims History

When putting together a quote, your insurer will also look at your history of submitting insurance claims. Previous insurance claims you’ve requested are compiled in a Comprehensive Loss Underwriting Exchange, or CLUE report. Both approved and denied claims will show up in this report.

If you have a history of submitting frequent insurance claims, you could be charged higher premiums. This is because insurers will assume that you will continue this pattern in the future, which is a larger financial risk for them.

Final Thoughts

Understanding the factors that influence your home insurance quote will make things easier when it comes time to choose a policy. Quotes for the same home can vary between providers, because each provider has its own pricing strategy and methodology. To find the best home insurance for you, get quotes from multiple providers. Compare them to see who can provide the best value for money. 

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