Factors insurance companies take into account when determining your property premium include:

• Age of home/home’s condition: A newer home or a home that has been fully updated and regularly maintained would generally have a lower premium, as the plumbing, electrical, or roof would have fewer issues resulting in less claims.
• Loss prevention: Devices which will help mitigate loss (i.e. monitored burglar alarm) will result in lower premiums as the likelihood of a claim occurring, and any resulting damages, will be reduced.
• Number of claims you have made: There are greater discounts given on premiums the longer you remain claims-free.
• Type of heating: Homes that use a wood-burning stove as a source of heating are at a higher risk of fires, which results in higher premium.

Protecting your property

The amount and type of coverage you choose will significantly impact your premiums. Policies that cover replacement costs—the amount needed to rebuild the home—typically have higher premiums compared to those that cover the actual cash value, which accounts for depreciation. Additionally, opting for more extensive coverage, such as endorsements for valuable items or higher liability limits, can increase your premiums.

Personal factors play a role as well. Insurers often use credit scores to assess risk, with higher scores potentially leading to lower premiums. A history of frequent claims can indicate higher risk, resulting in increased costs. Furthermore, the occupancy of the home matters; owner-occupied homes generally have lower premiums compared to rental properties or vacation homes.

Finally, the choices you make regarding deductibles and potential discounts can affect your premiums. Selecting a higher deductible, which is the amount you pay out of pocket before insurance kicks in, can lower your premium. Many insurers also offer various discounts for bundling home and auto insurance, installing security systems, or maintaining a claim-free history for a certain period.