What actually drives homeowners insurance premiums

Renewals go up and the first question is always “why?” Premiums track how expensive it is to rebuild your house and how risky your ZIP code looks to insurers—not the price you paid for the home.

What you are paying for

Typical HO-3 style packages combine dwelling, other structures, personal property, liability, and loss-of-use—each with limits and deductibles.

Major cost drivers

• Replacement cost of the home (not market value alone)
• Location (wildfire, hail, hurricane, crime)
• Roof age and construction
• Claims history
• Deductible choices (including percentage wind/hail deductibles)
• Credit-based factors where allowed
• Bundling with auto

How to compare

Match dwelling limits, deductibles, and endorsements before comparing price. See personal liability coverage and the home learn hub.