What factors influence homeowners insurance costs?

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What factors influence homeowners insurance costs?

You have just purchased a new home and need to control your monthly expenses. Your homeowners insurance is an important part of your budget. The average cost of homeowners’ insurance is determined by many factors. You might be surprised to learn that the cost of homeowners insurance costs can vary depending on whether you own a particular breed of dog. Let’s take an in-depth look at the factors that affect how your homeowners insurance works and what you can expect.

Let’s take an in-depth look at the factors that affect how homeowners insurance is calculated, and what you should expect.

Insurance history and claims history

These are some of the considerations that might be made when determining your homeowners insurance premium:

  • Credit history
  • Insurance score
  • Gaps in coverage
  • Sum of homeowners claims
  • Frequency homeowners’ claims

Qualities of your brand new house

Age and condition of the home – Older models are more expensive to insure as they haven’t been updated to meet local building codes.

Types and types of structures – Both the primary material (such as brick, stone) as well as the type of roof (such as composite slate or slate) must be taken into account.

Security and safety features A lower premium could be achieved by having the latest alarm systems installed and smoke detectors. Additional devices that can reduce your monthly payments include sprinkler systems, fire extinguishers, deadbolt locks and fire extinguishers.

The location of the home

The location you live has a huge impact on the cost and quality of your homeowners insurance. Additional coverage is required if you live near an area susceptible to earthquakes and hurricanes.

Not only is your location important, but so is the physical location of you house. You can also be a contributing factor if you live in an area with a high crime rate.

States with costly vs. cheap homeowners insurance

Cheapest States to Own a Home


According to updated 2021 figures, Ohio is the least expensive state to insure your home. The average annual premium is $895.1


Missouri has the second lowest cost state for homeowners insurance, thanks to low home values2 and low population density3. The average annual premium in Missouri is $897.4.

South Dakota

South Dakota is home to the third lowest cost state for homeowners insurance, at $898.6 per annum. This is due to its low population density (5 people per square mile).

These are the most expensive places to live in a house


Maryland’s home insurance premiums are the highest of any state, at an average rate of $1,212 per year.


Virginia is home to the second highest premiums for homeowners insurance, with an average annual premium of $1,181.


“The First” ranks third among the most expensive states for homeowners to insure, with an average annual rate $1,172.7

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