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  • Writer's pictureEric L. Ash

What Affects My Homeowners Insurance Rates?

Updated: May 5, 2023


What affects home insurance rates
What affects home insurance rates

As a homeowner, one of the most important decisions you can make is purchasing insurance to protect your property from damage and loss. Homeowners insurance is designed to protect you financially in case of unexpected events like natural disasters, theft, or accidents on your property. However, not all insurance policies are created equal, and the rates and premiums can vary significantly depending on a variety of factors. In this blog post, we'll take a closer look at the factors that affect homeowners insurance rates and premiums.

  • Location

The location of your home is one of the most important factors that determine your insurance rates. Insurance companies look at the crime rate in your area, the frequency of natural disasters, and the likelihood of damage from other factors like earthquakes and hurricanes. If you live in an area with a high crime rate or frequent natural disasters, you can expect to pay higher insurance rates.

  • Home Value

The value of your home also plays a major role in determining your insurance rates. If your home is worth more, the insurance company will need to pay out more in the event of a claim, so they will charge higher premiums. On the other hand, if your home is worth less, your insurance rates will be lower.

  • Age and Condition of Home

The age and condition of your home can also affect your insurance rates. Older homes tend to be more expensive to insure because they are more likely to have outdated wiring, plumbing, and roofing. Homes in poor condition, with issues like leaks, cracks, and structural damage, will also result in higher premiums.

  • Type of Coverage

The type of coverage you choose will also have a significant impact on your insurance rates. A policy that covers only the structure of your home will be less expensive than one that covers the contents of your home as well. Additionally, if you choose a policy with a high deductible, your premiums will be lower.

  • Credit Score

Many insurance companies also consider your credit score when determining your insurance rates. Studies have shown that people with higher credit scores are less likely to file claims, so insurance companies may offer them lower rates. If you have a poor credit score, you may be considered a higher risk and have to pay higher premiums.

  • Claims History

Finally, your claims history will also play a role in determining your insurance rates. If you have a history of making frequent claims, your insurance company may consider you a higher risk and charge higher premiums. On the other hand, if you have a history of few or no claims, you may be eligible for lower rates.


In conclusion, homeowners insurance rates and premiums can vary significantly depending on a variety of factors, including location, home value, age and condition of home, type of coverage, credit score, and claims history. By understanding these factors, you can make informed decisions about the type of coverage you need and the best way to protect your home and finances.


The Eric L. Ash Insurance agency can help with all of your insurance needs. Reach out today to start getting your insurance needs in order.

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