Frequently Asked Questions
How is home insurance premium calculated?▼
Home insurance premiums are based on several factors: the replacement cost of your home, construction materials, location and natural disaster risk, age of the home, deductible amount, claims history, and credit score. This calculator uses a base rate model adjusted by these risk factors to provide an estimate.
What's the difference between home value and coverage amount?▼
Home value (market value) includes land, which doesn't need to be insured. Coverage amount should be the replacement cost — how much it would cost to rebuild your home from scratch. This is typically less than market value in expensive land areas, but can be more in areas with high construction costs.
How does the deductible affect my premium?▼
A higher deductible lowers your annual premium because you're agreeing to pay more out-of-pocket before insurance kicks in. Going from a $500 to a $2,500 deductible can reduce premiums by 15-25%. Choose a deductible you can comfortably afford in an emergency.
Does home insurance cover floods and earthquakes?▼
No. Standard homeowners insurance does NOT cover flood or earthquake damage. You need separate flood insurance (often through NFIP) and earthquake insurance policies. If you're in a high-risk area for either, these additional policies are strongly recommended.
How can I lower my home insurance premium?▼
Common ways to reduce premiums: (1) increase your deductible, (2) bundle with auto insurance for multi-policy discounts, (3) install security systems and smoke detectors, (4) improve your roof, (5) maintain a claims-free history, (6) improve your credit score, and (7) shop around and compare quotes from multiple insurers.