Home Insurance Rating Factors
- Rating factors like location, credit score, and the age of your home are crucial in assessing risk for calculating home insurance rates.
- You can lower your rate by adjusting deductibles, adding safety features, or bundling policies.
The Zebra can help find the best homeowners insurance for your unique profile. Get started today.
What factors affect home insurance premiums?
The average cost of homeowners insurance in 2025 is $2,802 per year—but your rate could be higher or lower. That’s because insurance companies look at a mix of personal and property details, known as rating factors, which vary from one person to the next. Let's explore each of these factors and how they might impact the cost of your homeowners insurance.
Jump to factors regarding:
Your home ↓
- Location
- Construction type
- Age of home
Your policy ↓
- Dwelling coverage amount
- Deductible amount
Your background ↓
- Credit history
- Claims history
- Marital status
- Dwelling coverage: This is what pays to fix or replace your home. You should at least carry an amount equal to the value that your insurer assigns to your home. Some insurers may offer an option to increase this limit above your home’s value to account for inflation and the rising costs of labor, though you will have to pay an increased premium.
- Other structures coverage: Other structures on your property (such as an unattached garage or workshop) are typically covered up to 10% of your dwelling limit. If these structures would require more than what that limit provides, overall dwelling limits may have to be raised.
- Property coverage: Your personal property coverage is usually equal to half of your dwelling coverage. However, some items that you own may be particularly valuable, such as jewelry, fine art, and other collectibles. For these items, an insurance company usually allows you the option to add scheduled property coverage that protects certain higher-value items.
- Loss of use coverage: If your home is unable to be lived in, this coverage covers things such as accommodations, transportation and food costs. The limits of this coverage are typically about 20-30% of your dwelling coverage.
- Increased liability limits: Your personal liability insurance protects you from liability claims both at home and away. Most companies allow these limits to be raised for an added premium to offer you even more protection.
- Medical payments: Also referred to as “med pay,” this coverage goes toward the costs of injuries or property damage that occurs on your property. The limits of this coverage typically start around $1,000 per occurrence, but can usually be increased for an additional premium.
- Endorsements: Sometimes referred to as “riders,” endorsements are add-ons that can provide extra coverage in special circumstances. Common homeowners endorsements include sewer backup, water damage, and home business coverage.
- Actual cash value or replacement cost value: Most standard policies cover your primary dwelling at replacement cost, but your personal belongings might be covered at actual cash value, which factors in depreciation when assigning a dollar value to your belongings. If, for instance, your couch is covered at actual cash value, you would not receive a payout large enough to cover the cost of a brand new couch of the same type. To receive a larger sum, you would need to cover your belongings at replacement cost, which could increase your rates.
"Rising costs for building materials and labor are a big factor. As construction materials get more expensive, so does everything else — including the cost to rebuild or repair a home. And when the cost of living goes up, labor costs go up too. That all gets reflected in your insurance premiums."
Erick Sosa, Sales manager at The Zebra
1. Location
Home insurance costs are highly influenced by where you live. Areas with higher crime rates or those prone to natural disasters like earthquakes, hurricanes or wildfires will typically cost more. See the table below for average rates in your state:
Updating data...
| Avg. Annual Premium | Avg. Monthly Premium |
|---|---|
| $3,674 | $306 |
Source: The Zebra
The Zebra’s Dynamic Insurance Rating Tool data methodology
The Zebra’s Dynamic Insurance Rating Tool for home and auto insurance rates utilizes the latest ZIP code-level rate filings from across the U.S., sourced from Quadrant Information Services and S&P Global. These filings, typically updated annually or biennially by insurers, are verified through Quadrant’s QA process and then integrated into The Zebra’s estimator.
The displayed rates are based on a dynamic home and auto profile designed to reflect the content of the page. This profile is tailored to match specific factors such as age, location, and coverage level, which are adjusted based on the page content to show how these variables can impact premiums.
For a comprehensive understanding, see our detailed methodology.
2. Construction type
If your home is constructed of expensive or otherwise hard-to-find building materials, you can expect the cost to replace the house to be reflected in your home insurance premiums. This is especially apparent in older craftsman-style homes where many of the features are handcrafted or one-of-a-kind. The cost to repair or replace these features is often prohibitively expensive in today’s marketplace.
3. Home's age and condition
An older home with outdated plumbing or wiring may present a higher risk for insurance companies. The condition of your home is assessed during the underwriting process, and poor maintenance can increase your homeowners insurance premiums. Regular maintenance of your roofing and essential systems can positively impact your insurance rates.
Your roof takes a beating from the elements. Over time, exposure to the sun and harsh weather conditions can weaken it, increasing the chance for leaks. If your insurance company sees your older or worn-down roof as a risk, that will be reflected in what you pay for home insurance.
Learn more about how your roof impacts home insurance rates.
4. Replacement cost of your home
Replacement cost is insurance-speak for the amount it would cost to rebuild your home. It's based on a lot of the factors we've already discussed, like your home's age, architectural style, rebuild costs in your area, and more.
Replacement cost is used interchangably with dwelling coverage in the table below. The following data displays average costs by dwelling coverage amount.
Updating data...
| Dwelling | Avg. Annual Premium |
|---|---|
| 100000 | $1,364 |
| 200000 | $2,081 |
| 300000 | $2,802 |
| 400000 | $3,501 |
| 500000 | $4,217 |
| 600000 | $4,930 |
Source: The Zebra
5. Deductible amount
Just like car insurance, home insurance premiums are impacted by the deductible you set; the higher the deductible, the lower the monthly premium, and vice versa.
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| Deductible Amount | Avg. Annual Premium | Avg. Monthly Premium |
|---|---|---|
| 500 | $2,999 | $250 |
| 1,000 | $2,802 | $233 |
| 2,000 | $2,542 | $212 |
| 2,500 | $2,503 | $209 |
Source: The Zebra
The policy type that you choose greatly informs the rates that you will pay. A more robust open-peril policy — like an HO-5 policy form — will likely set you back more than a bare-bones home insurance policy that only covers the most basic perils.
Compare homeowners insurance rates quickly and easily.
6. Credit history
Credit history has long been used by the insurance industry as a rating factor; this is because, statistically, those with a higher credit score are less likely to file a claim than those with a poorer credit rating. However, some states may not allow the use of your credit score when putting together your rates.
Updating data...
| Credit Tier | Avg. Annual Premium |
|---|---|
| Average | $3,140 |
| Excellent | $2,260 |
| Fair | $3,559 |
| Good | $2,802 |
| Poor | $7,260 |
| Very Good | $2,518 |
| Worst | $10,175 |
Source: The Zebra
7. Claims history
Similarly, a homeowner with a long history of making claims is less attractive to most homeowners insurance companies. To safeguard against risk, they will likely increase your premiums if you have made a number of recent claims. Learn more about how much your rate can increase after a claim.
Updating data...
| Claims | Avg. Annual Premium | % Increase |
|---|---|---|
| No Claims | $2,802 | 0% |
| 1 Liability Claims | $3,343 | 19% |
| 2 Liability Claims | $3,942 | 41% |
Source: The Zebra
Additional home insurance rating factors
Certain features of your property can impact your homeowners insurance rates. Items like swimming pools or trampolines— known as attractive nuisances in insurance— can raise premiums significantly. Even certain aggressive dog breeds can be viewed as risky in the eyes of the insurance company.
Luckily, though, other factors tend to lower premiums, like a home security system or fire safeguards. Employment status can also have an effect—retired folks often pay less, and veterans can earn special rates from insurance companies that cater to the military.
How can I save money on homeowners insurance?
While many of the rating factors we discussed can't be changed, you have some control over certain aspects— like coverage, credit, and deductibles— that can help lower your rate. Additionally, home insurance discounts are often available if you qualify.
Comparing quotes with several companies is our number one tip for saving on homeowners insurance. Home insurance costs and discounts will vary by company, so it's important to do your research. Sound daunting? The Zebra makes it easy—get started online or talk to one of our licensed agents for expert help.
Bundling home and auto insurance with the same provider often unlocks the biggest savings. It’s one of the most effective ways to lower your overall costs. Look for multi-policy discount opportunities when you shop.
Adding safety features—like security cameras, alarms, or fire protection—can lower your insurance rates, if they’re available and affordable for you.
Choosing a higher deductible usually means paying less each month— that’s true across most types of insurance. Just keep in mind: if something goes wrong, you’ll have to cover more out of pocket—but in return, your ongoing premiums stay low.
As we saw above, even a single claim can raise insurance rates. Before you file, ask yourself: Is it worth it? If the repair cost is less than your deductible—or even close—you might want to pay out of pocket instead. Skipping the insurance claim could help keep your premiums steady
Compare home insurance quotes to make an informed decision.
Frequently asked questions: Home insurance rating factors
About The Zebra
The Zebra is not an insurance company. We publish data-backed, expert-reviewed resources to help consumers make more informed insurance decisions.
- The Zebra’s insurance content is written and reviewed for accuracy by licensed insurance agents.
- The Zebra’s insurance editorial content is not subject to review or alteration by insurance companies or partners.
- The Zebra’s editorial team operates independently of the company’s partnerships and commercialization interests, publishing unbiased information for consumer benefit.
- The auto insurance rates published on The Zebra’s pages are based on a comprehensive analysis of car insurance pricing data, evaluating more than 83 million insurance rates from across the United States.