What Factors Affect Homeowners Insurance? 
There are many factors that affect the rates for homeowners insurance : Homeowner -LRB- insured -RRB- - The insured 's age , credit rating , loss experience , prior coveragewill affect the premium charged for a homeowners policy . Home location - Location is a very big deal . For example , a home located on the coast will be subject to a much higher premium compared to the same home located far inland due to the increased possibility of loss from wind or storm damage . Likewise , a home located in an area that has excellent fire protection -LRB- very close proximity to a fire station -RRB- will have a lower premium than the same home located in a secluded location very far away from fire protection . Home Construction - A stick-built wood frame home is more expensive to insure than the same valued home constructed of fire-resistive materials due to the increased potential for catastrophic fire loss with the former . Coverage Limits - Obviously a $ 500,000 home will cost more to insure than a similarly located/constructed $ 200,000 home . 