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Home Insurance Premium Calculator

Enter your property details to estimate your annual premium.

Property Details
Replacement cost to rebuild your home
Coverage Options
Risk Factors

Premium Estimate

Enter your property details to see estimated annual premium.

Money-Saving Tips
  • Bundle home + auto insurance for 5-15% savings
  • Install security system for 3-5% discount
  • Maintain good credit score above 750
  • Choose higher deductible to lower premiums
  • Review policy annually for better rates
  • Compare quotes from at least 3 insurers
Important Disclaimer
This is an estimate only. Actual premiums vary by insurer and depend on detailed property inspections, claims history, local factors, and underwriting. Get quotes from licensed insurers for accurate pricing.
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Key Coverage Types:

  • HO-3 Coverage (Most Common)
  • Dwelling & Liability
  • Personal Property Protection
  • Loss of Use Coverage

Investopedia: Home Insurance Guide

Related Tools

What is Homeowners Insurance?

Homeowners insurance (often called home insurance or hazard insurance) is a type of property insurance that covers losses and damages to your home and its contents, as well as liability protection for accidents that occur on your property. Most mortgage lenders require homeowners insurance as a condition of the loan.

A standard homeowners policy (HO-3) provides comprehensive protection against a wide range of perils including fire, theft, vandalism, windstorms, and liability claims. However, it typically excludes flood damage and earthquake damage, which require separate policies.

Understanding how home insurance premiums are calculated can help you find the right balance between coverage and cost. Factors like your home's value, location, age, construction type, and your credit history all play a role in determining your annual premium.

How Home Insurance Premiums Are Calculated

Insurance companies use a complex formula considering many factors. Here are the key components:

Property Factors
  • Replacement cost - Cost to rebuild your home
  • Age of home - Older homes cost more to insure
  • Construction type - Brick is cheaper than wood frame
  • Roof age/condition - New roofs get discounts
  • Square footage - Larger homes cost more
Location Factors
  • State/region - Coastal and tornado-prone areas cost more
  • Fire station proximity - Closer is better
  • Crime rate - High crime increases premiums
  • Natural disaster risk - Hurricanes, wildfires, etc.
  • Local building costs - Labor and materials
Personal Factors
  • Credit-based insurance score - Higher score = lower premium
  • Claims history - Past claims increase rates
  • Insurance history - Gaps in coverage cost more
  • Occupation - Some get discounts
  • Age - Retirees may get discounts
Coverage Choices
  • Deductible amount - Higher deductible = lower premium
  • Coverage limits - More coverage costs more
  • Liability limits - $100K vs $500K+
  • Riders/endorsements - Jewelry, floods, etc.
  • Replacement vs ACV - Replacement cost is better

Understanding Your Policy Coverage

A standard HO-3 policy includes six types of coverage:

Coverage What It Covers Typical Limit
Coverage A: Dwelling Your home's structure, walls, roof, built-in appliances Full replacement cost
Coverage B: Other Structures Detached garages, fences, sheds, gazebos 10% of Coverage A
Coverage C: Personal Property Furniture, electronics, clothing, appliances 50-70% of Coverage A
Coverage D: Loss of Use Hotel, meals, living expenses if displaced 20% of Coverage A
Coverage E: Liability Lawsuits if someone is injured on your property $100K-$500K
Coverage F: Medical Payments Medical bills for guests injured on property $1,000-$5,000

10 Ways to Lower Your Home Insurance Premium

  1. Increase your deductible - Going from $500 to $2,500 can save 15-25%.
  2. Bundle policies - Combine home + auto for 5-15% discount.
  3. Improve home security - Alarms, deadbolts, cameras save 3-10%.
  4. Improve your credit score - Higher credit = lower premiums.
  5. Stay claims-free - Some insurers offer claims-free discounts.
  1. Update your roof - New roofs can significantly reduce premiums.
  2. Retire at home - Retirees often get discounts for being home more.
  3. Ask about all discounts - Loyalty, autopay, paperless, profession.
  4. Shop around annually - Compare 3-5 quotes each renewal.
  5. Review coverage annually - Remove unnecessary riders.

Frequently Asked Questions

Your dwelling coverage should equal the full replacement cost to rebuild your home (not market value or purchase price). This includes materials and labor at current prices. Personal property coverage is typically 50-70% of dwelling coverage. Liability coverage of at least $300,000 is recommended, with $500,000 or more for higher net worth individuals.

Standard HO-3 policies typically exclude: floods (requires separate NFIP or private flood policy), earthquakes, sewer backups, maintenance issues, pest damage, war, nuclear hazards, and intentional damage. High-value items like jewelry, art, and collectibles may have limited coverage and need scheduled riders.

Actual Cash Value (ACV) pays the current value of items minus depreciation. A 10-year-old TV might only pay $100. Replacement Cost Value (RCV) pays to replace items with new equivalents at current prices. RCV policies cost 10-15% more but provide much better protection. Always choose RCV if possible.

Even neighbors can have very different premiums. Factors include: different insurers with different rates, claims history, credit score differences, home age and condition, coverage levels chosen, deductible amounts, pool or trampoline, breed of dog, and length of time with the insurer.

Generally, no. Filing claims—even small ones—can raise your premium for 3-5 years and may result in non-renewal. The general rule: if the claim is less than 2x your deductible, consider paying out of pocket. For example, with a $1,000 deductible, don't file claims under $2,000-$2,500.

Review annually at renewal time and after major life events: home renovations (increase coverage), buying expensive items (add riders), paying off mortgage (may want to reduce coverage), major claims (shop around). Also review after adding pools, trampolines, or getting certain dog breeds, as these affect liability.
Important Disclaimer

This calculator provides estimates for educational purposes only. Actual premiums are determined by insurance companies based on detailed underwriting that includes property inspections, claims databases (CLUE reports), credit checks, and proprietary algorithms. Always get actual quotes from multiple licensed insurers before making decisions.