After deciding on the amount of coverage you need for your home, the next logical step is understanding how much you’ll have to pay to secure that protection.

Every homeowners insurance company can provide you with the coverage levels you want — but they will almost always offer that coverage at different prices.

Comparing the relationship between coverage amount and price is what determines whether you’re getting a good deal. This should be your primary focus when comparing offers between companies.

Other factors, such as customer service, claims handling, and financial strength, are important too — but those should be considered after you’ve identified which company is giving you the best value for the coverage you need.

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Let’s break down the factors that can affect how much you’ll pay for homeowners insurance.

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Factors Affecting Price

Homeowners insurance companies use a wide range of data to calculate your premium.
Each company uses its own combination of factors — and even when they use the same factors, the weight they assign to each one can be very different.

Below are common factors that may influence your price:

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Deductible Amount

Higher deductibles lead to lower premiums.
Lower deductibles lead to higher premiums.

This works the same way as auto insurance — the more you’re willing to pay out-of-pocket before the insurance company pays, the cheaper your policy becomes.

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Home Location

Your location is one of the biggest influences on your price. Insurers consider:

• risk of hurricanes, tornadoes, wildfires, earthquakes, or hail
   

• crime rates
   

• proximity to a fire station
   

• local building costs
   

High-risk or high-cost areas generally lead to higher premiums.

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Construction Type & Materials

What your home is made of affects what you pay.
For example:

• Brick or concrete homes may cost less to insure due to better fire resistance.
   

• Wood-frame homes often cost more because they’re more vulnerable to fire and wind damage.
   

Home Age & Condition

Older homes often lead to higher premiums because older electrical, plumbing, and roofing systems carry greater risk of damage.

Newer homes — especially those built to modern safety codes — typically cost less to insure.

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Roof Age and Quality

Your roof plays a major role in protecting your home.
A newer, high-quality roof can significantly reduce your premium.
An older or worn roof can increase it.

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Home Value & Rebuild Cost

Homeowners insurance is based on how much it would cost to rebuild your home, not its real estate market value.
If the rebuild cost is high, the premium will be high.

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Personal Property Amount

The more belongings you insure, the higher the price.

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Liability Coverage Amount

Higher liability limits protect you better but increase your premium.

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Credit Score (in many states)

A higher credit score often results in a lower premium; a lower score can increase it.
Some states restrict or prohibit the use of credit scores in pricing.

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Claims History

If you’ve filed previous homeowners insurance claims, you may be seen as a higher-risk customer — which often results in higher premiums.

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Occupancy Type (Primary, Secondary, Rental)

• Primary residence → lowest risk, lowest premiums
   

• Vacation home → higher risk, higher premiums
   

• Rental property → insurance is more expensive due to increased liability and tenant-related risks
   

Optional Coverages Added

Just like auto insurance, homeowners policies have optional add-ons that increase the cost. These include:

• water backup
   

• scheduled valuables (jewelry, watches, collectibles)
   

• equipment breakdown
   

• service line coverage
   

• identity theft protection
   

These aren’t required, but choosing them will raise your premium.

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Pets (in some cases)

Certain dog breeds may increase liability risk, which can affect pricing.

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Home Security & Safety Features

Safety can lower your premium.
Examples:

• smoke detectors
   

• alarm systems
   

• smart home sensors
   

• gated communities
   

• storm shutters
   

• fire sprinklers
   

Insurers reward lower risk with lower prices.

To be clear:
We are not saying every company uses all of these factors, nor that each factor is applied in a particular way.
These are simply common industry trends.

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Why Prices Differ Between Companies

Most homeowners insurance companies will not disclose the exact formula they use to determine your price. Each company analyzes risk differently and weighs factors in its own way.

This is the main reason you may receive dramatically different prices for the same coverage.

It’s also why you should consider every legitimate homeowners insurance company available — from large national carriers to small local ones.

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Homeowners insurance is not like retail

In traditional retail, a larger store usually offers lower prices because of bulk purchasing power.

But homeowners insurance doesn’t operate on that logic because insurance is not a physical product that can be bought in bulk — it’s a risk-based financial service.

This levels the playing field.

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Smaller companies can sometimes offer lower prices simply because their internal risk calculations differ. They may also take on more risk to attract new customers. That doesn’t mean their service is worse — only that their pricing model offers competitive deals.

Remember:
A homeowners insurance policy is a legally binding contract. Once the company agrees to insure you, they carry the financial risk — not you — regardless of their size.

So don’t be afraid to compare offers from both large and small insurers.

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Homeowners Insurance Quotes

A homeowners insurance quote is an estimated price offered by an insurance company for the specific coverage amounts you request.

It is not your final premium, though it often ends up being very close.

Your quote will change if you adjust:

• dwelling coverage
   

• personal property limits
   

• liability limits
   

• deductibles
   

• optional coverages
   

When getting quotes, be prepared to provide detailed information about:

• your home
   

• your construction materials
   

• your roof
   

• your claims history
   

• your belongings
   

• safety features
   

• how you use the home (primary, rental, vacation)
   

You can request quotes online, over the phone, or in-office.

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Offer Comparison Tool (OCT)

Just like auto insurance, homeowners buyers usually fall into two groups:

1. Price-focused shoppers
    

2. Coverage-focused shoppers
    

Our Offer Comparison Tool (OCT) makes it easy for either type of buyer to compare quotes.

Each state has its own OCT because homeowners insurance varies significantly depending on location, natural risks, and local rebuilding costs.

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The OCT contains:

• Industry-recommended coverage levels
   

• Common coverage amounts in your area
   

• Your ideal coverage amounts
   

• Your target price
   

• Space to compare multiple company offers side-by-side
   

• Ratings sections for customer service, reviews, and financial strength
   

You’ll use this tool the same way you would with auto insurance — by filling in your desired coverage amounts and comparing how each insurer prices them.

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Getting Quotes and Comparing Offers

Before you compare prices, print or prepare your state’s OCT.

When requesting quotes:

• Ask for the exact same coverage amounts from each company.
   

• Keep deductible amounts consistent across quotes.
   

• Add or remove optional coverages uniformly so each company is compared fairly.
   

• Request at least three quotes, preferably more.
   

Get a mix of:

• national companies
   

• regional or local companies
   

• online platforms
   

• in-office agents
   

Different companies excel in different markets.

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Comparison Strategies

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If you are a price-focused shopper:

Start with your state’s minimum or the lowest acceptable coverage.
See which company offers the lowest price.
Then increase coverage until you reach your target price.

This tells you who gives the most protection for your budget.

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If you are a coverage-focused shopper:

Enter your ideal coverage amounts on each quote.
Compare who offers the lowest price for that specific protection level.

This tells you who gives the best deal for your needed coverage.

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Look for Discounts

Homeowners insurance discounts can significantly reduce your premium. Examples include:

• Multi-policy/bundle discount (home + auto)
   

• Security system discount
   

• Fire alarm or sprinkler discount
   

• New roof discount
   

• Claims-free discount
   

• Gated community discount
   

• Loyalty discount
   

• Senior/retirement discount
   

• Pay-in-full discount
   

• Smart home monitoring discount
   

• New home construction discount
   

Always ask insurers which discounts apply to you.

At this stage, fill in the coverage and pricing parts of your comparison sheets. Leave the ratings section empty — we’ll complete it in the next section.

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That completes the Pricing section.

Now we move on to the next part: Other Factors.