Estimate your potential annual home insurance premium based on key factors.
$500
$1000
$1500
$2000
Excellent (750+)
Good (670-749)
Fair (580-669)
Poor (Below 580)
Low Risk
Moderate Risk
High Risk
Very High Risk
Estimated Annual Premium
$0.00
This is an estimate only.
Understanding Your Home Insurance Cost
Calculating home insurance premiums involves a complex interplay of factors that insurers use to assess the risk associated with insuring your property. This calculator provides an estimated annual premium based on several key variables. It's important to remember that this is a simplified model, and actual quotes from insurers may vary significantly.
Factors Influencing Your Premium:
Home Value: The more your home is worth, the higher the cost to rebuild it, leading to higher premiums.
Square Footage: Larger homes generally cost more to insure due to increased reconstruction costs.
Home Age: Older homes may have outdated electrical, plumbing, or roofing systems, increasing the risk of claims and thus higher premiums.
Deductible: This is the amount you pay out-of-pocket before your insurance kicks in. A higher deductible typically results in a lower premium, and vice versa.
Credit Score: Many insurers have found a correlation between creditworthiness and the likelihood of filing claims. In most states, individuals with better credit scores tend to pay lower premiums.
Location Risk: Properties in areas prone to natural disasters like hurricanes, earthquakes, or wildfires will have higher premiums to account for this increased risk.
Claims History: While not directly included in this calculator, your past claims history is a significant factor for insurers.
Coverage Types: The specific types and limits of coverage you choose (e.g., dwelling, personal property, liability) will impact the final cost.
How the Calculator Works (Simplified Model):
This calculator uses a foundational formula to estimate the annual premium:
Estimated Premium = (Base Rate per $1000 Value + Cost per SqFt + Age Factor + Location Multiplier) * (1 - (Deductible_Benefit_Factor)) * (Credit_Score_Multiplier)
Where:
Base Rate: A starting point based on home value. We use a rough estimate, e.g., $0.75 per $1000 of home value.
Cost per SqFt: An adjustment for the size of the home, e.g., $0.10 per square foot.
Age Factor: An increase in cost for older homes, e.g., +$25 for every 5 years over 10 years old.
Location Multiplier: A factor based on the selected location risk.
Deductible Benefit Factor: A discount factor that increases with a higher deductible. E.g., for $500 deductible, no discount (factor 0); for $1000, a 5% discount (factor 0.05); for $2000, a 10% discount (factor 0.10).
Credit Score Multiplier: A factor that reduces the premium for better credit scores. E.g., Excellent: 0.85, Good: 0.95, Fair: 1.10, Poor: 1.25.
Example Calculation:
Let's assume:
Home Value: $300,000
Square Footage: 1500 sq ft
Home Age: 10 years
Deductible: $1000
Credit Score: Good
Location Risk: Moderate
The calculation might look something like this:
Base Cost: ($300,000 / 1000) * $0.75 = $225
SqFt Cost: 1500 * $0.10 = $150
Age Factor: (Since age is 10, no additional factor for this simple model, or a small factor if age > 10) = $0
This calculation is a simplified representation. Insurance companies use sophisticated algorithms and data analysis. Always consult with a licensed insurance agent for an accurate quote tailored to your specific needs.
function calculateHomeInsurance() {
var homeValue = parseFloat(document.getElementById("homeValue").value);
var sqFootage = parseFloat(document.getElementById("sqFootage").value);
var homeAge = parseFloat(document.getElementById("homeAge").value);
var deductible = parseFloat(document.getElementById("deductible").value);
var creditScore = document.getElementById("creditScore").value;
var locationFactor = parseFloat(document.getElementById("locationFactor").value);
var annualPremium = 0;
// Basic validation
if (isNaN(homeValue) || homeValue <= 0 ||
isNaN(sqFootage) || sqFootage <= 0 ||
isNaN(homeAge) || homeAge < 0 ||
isNaN(deductible) || deductible <= 0 ||
isNaN(locationFactor) || locationFactor 10) {
var yearsOver10 = homeAge – 10;
var numberOf5YearIncrements = Math.floor(yearsOver10 / 5);
ageSurcharge = numberOf5YearIncrements * ageSurchargePer5Years;
}
// — Location Risk Adjustment —
// Base cost for location before multiplier, then apply multiplier
var baseLocationCost = 150; // Arbitrary base cost before multiplier
var locationCost = baseLocationCost * locationFactor;
// — Subtotal Before Deductible & Credit Score —
var subTotal = baseCost + sizeCost + ageSurcharge + locationCost;
// — Deductible Benefit —
var deductibleDiscountFactor = 0;
if (deductible === 1000) {
deductibleDiscountFactor = 0.05; // 5% discount for $1000 deductible
} else if (deductible === 1500) {
deductibleDiscountFactor = 0.08; // 8% discount for $1500 deductible
} else if (deductible === 2000) {
deductibleDiscountFactor = 0.12; // 12% discount for $2000 deductible
}
// For $500 deductible, discount factor remains 0
// — Credit Score Adjustment —
var creditScoreMultiplier = 1.0;
if (creditScore === "excellent") {
creditScoreMultiplier = 0.85;
} else if (creditScore === "good") {
creditScoreMultiplier = 0.95;
} else if (creditScore === "fair") {
creditScoreMultiplier = 1.10;
} else if (creditScore === "poor") {
creditScoreMultiplier = 1.25;
}
// — Final Premium Calculation —
annualPremium = subTotal * (1 – deductibleDiscountFactor) * creditScoreMultiplier;
// Ensure premium is not negative (though unlikely with this logic)
annualPremium = Math.max(0, annualPremium);
document.getElementById("annualPremium").innerText = annualPremium.toFixed(2);
document.getElementById("result").style.display = "block";
}