Understanding Home Insurance

Location & Zip Code

Urban areas with theft risk cost more. Disaster-prone areas (hurricanes, earthquakes) significantly increase premiums.

Home Age & Condition

Older homes, especially with outdated electrical or plumbing, cost more. Newer homes get better rates.

Home Value & Rebuild Cost

Higher-valued homes cost more to insure. Square footage and construction materials matter.

Claims History

Multiple claims dramatically increase rates. A claims-free history earns significant discounts.

Credit Score

Insurance companies use credit as a risk indicator. Higher scores typically get better rates.

Deductible Amount

Choosing higher deductibles ($2,500+) lowers your annual premium significantly.

Security & Safety Features

Burglar alarms, deadbolts, fire extinguishers, and sprinkler systems can reduce rates 5-25%.

Occupancy & Vacancy Status

Vacant homes or investment properties cost more. Primary residences get better rates.

Distance to Fire Station

Homes within 3 miles of a fire station typically receive discounts.

Roof & HVAC Age

Newer roofs and heating/cooling systems reduce premiums. Old roofs may increase rates significantly.

Bundling with Auto Insurance

Combining policies with the same insurer typically saves 10-25%.

Tobacco Use in Household

Households with smokers typically pay slightly higher rates.

Combine homeowners with auto insurance for 10-25% ...

Burglar alarms and monitoring systems earn 5-15% d...

Newly constructed homes get 5-10% discounts....

3+ years without claims: 5-10% off. Track your his...

Long-term customers get 5-15% off premiums....

Primary residence vs. investment property rates di...

Set up auto-pay for 1-5% savings....

Receive bills and documents digitally for 1-3% off...

Alumni, military, or professional group member dis...

Homes with fire-resistant roofing get 10-25% disco...

Standard homeowners insurance does not cover flooding. Flood insurance is required if your home is in a high-risk flood zone and financed with a mortgage.

NFIP Coverage:

• Up to $250,000 for dwelling
• Up to $100,000 for contents
• Available through government program
• Private flood insurance also available

Standard homeowners insurance excludes earthquake damage. If you live in an earthquake-prone area, add earthquake coverage as an endorsement.

Typically Covers:

• Dwelling damage from quakes
• Personal property coverage
• Temporary housing
• Higher deductibles (10-25%)