What Would Increase My Home Insurance Rates?

On average, Americans in the United States pay $1,312 yearly in premiums, or rates, for their home insurance. This fluctuates from state to state. There are six major factors that could increase your home insurance rates:

  • Replacement cost
  • Credit history
  • Claims history
  • Marital Status
  • Age of home
  • Deductible

Replacement Cost

Many confuse market value with replacement cost, but they are two separate entities. Your replacement cost can include multiple variables, such as square footage, number of rooms, etc. This means that even if the market value number and the replacement cost may match up initially, it is not guaranteed. 

Credit History

Many homeowner insurance providers check your credit history, just like a bank lender does when you are trying to get a loan at the bank. If your score is high, or good, then you would potentially be considered low risk, and your rate would be lowered. If your score is lower, or bad, your rates could be higher. Insurers can use your credit history to decide if they think you will make your monthly premium payments on time. 

Claims History

Insurance companies also observe patterns of behavior. If you file a claim, the insurer automatically assumes you will file more claims in the future. If you have a history of filing multiple claims in the past, you may be deemed as “high risk.”

Marital Status

If you are married then you are more likely to receive a lower rate than a single person. When deciding on your homeowner rate, a married couple files less than the average number of claims, making them seem more “stable.” A single person, on the other hand, files more claims than normal, making you seem “unstable.” This increases your home insurance

Age Of Home

If you move into an older home that would need multiple improvements if rebuilt, then your home insurance rates will likely increase. Age and location are two of the most important factors when determining the amount to rebuild a home. 

If you make home improvements, such as electrical or plumbing, inform your insurance agency immediately because this can positively impact your rates.


A deductible is the set amount that you pay out of pocket. Your home insurance rate will lower if you agree to a higher deductible. It could also cost you more when you file a claim. Many insurance companies have a “disappearing deductible,” meaning that your deductible lowers over time if you have not filed any claims. 

Other Factors That Could Increase My Home Insurance Rates

There are also surprising factors that could increase your home insurance rates. Your home’s distance from water, such as living on the coast or in a flood zone, could increase your rates. Filing small claims can also impact it. Insurance companies think that if you file small ones, you will file large ones later on. The distance from a fire station also affects it. The closer you are to one, the less of a risk your home is. Dog breeds and attractive nuisances will increase your rates as well.

If you’re interested in learning more about how what can impact your home insurance rates, give All Things Insurance a call today.