Factors That Affect the Price of Homeowners Insurance

Question: My neighbor and I have the same size house – it’s even the same floor plan. Why is their insurance less than mine?

Answer: Even if your floor plan is the same, every homeowner’s specific situation is unique. There are many things that factor into the premium for your homeowner’s insurance. This is called a rating. Some of those factors are:

1. The cost to rebuild your home with the finishes and fixtures you currently have. Your neighbor may have finishes (such as countertops and flooring) that are less expensive than yours.

2. The age of the roof.

3. Any updates that have been done to the electrical or plumbing systems.

4. Your credit score.

5. Claim history for the property.

If you have any changes in any of these areas since your renewal, please contact our office. We will update your file and see if your premium can be reduced.


Do you have an insurance question you would like for Mike to answer? Email your questions to Rachel@honeainsurance.com .