Homeowners insurance: A basic guide to factors affecting premium cost

by Kate Hogan 11/13/2023

Towhomes with text about insurance premiums

Purchasing homeowners insurance protects your home and assets in case of emergency. As premiums increase, you may wonder what affects insurance costs. There are several factors determining the cost of your homeowners insurance, and understanding them will help you choose the best coverage.

Geographic location

Geographic location plays a huge role in homeowners insurance costs. Areas inclined to certain natural disasters can see a spike in insurance price. Some natural occurrences are not covered under standard insurances. 

For example, you may live in an area prone to wildfires. Yes, fires are covered under standard insurance. However, if you live in a place where they often occur, insurance costs may rise. 

Home structure & condition 

The premium cost of your insurance may be higher depending on the condition of your home. Living in an older hold may signal repairs may be needed more frequently. Due to this reason, the homeowners insurance premium would be higher. 

Roof condition 

In addition to the overall home condition, the state of your roof is a large factor on insurance premiums. If the roof is older, it will need to be replaced sooner, and the cost of this replacement can be significant. If the home you purchase needs this replacement sooner, insurance premiums may rise. 

Home safety by location 

Many factors in your very own neighborhood can have an effect on the cost of your insurance. For example, you may live in an area prone to tornadoes. Due to this occurrence happening frequently, it can increase your insurance cost. 

However, if you live in an area less likely to be hit by large storms or other natural perils, your insurance premium may be lower. 


About the Author

Kate Hogan

Kate Hogan – Amherst MA Realtor ® and Pioneer Valley

Your number one source for Real Estate in Amherst, MA, and surrounding towns!

Kate Hogan, a 20-year resident of Amherst and Top Producer at Brick & Mortar realty, has that unique combination of qualities you need in an agent: a big picture view of the entire Five College area, towns, and neighborhoods, a high standard of professionalism, and an innate talent for understanding homes. All of that, plus this savvy agent is known for being experienced, knowledgeable, and a lot of fun to work with.  As a full-time real estate professional, Kate’s approach is focused on getting to know her clients as real people and taking care of them from beginning to end.