How Are Home Insurance Rates Determined? 
A homeowners policy is based on your unique home . The first thing that the company will determine is the actual cost to replace the residence . The next thing that they will consider is the fire rating of the location . The company then computes a premium based on tables approved by the insurance commissioner in your state . There are optional coverages which might come into play and variations on liability limits . There are also underwriting concerns that will govern the acceptability of your individual home -LRB- presence of a pit bull or trampoline . -RRB- 