Estimate your potential annual homeowners insurance premium based on key factors.
Excellent (750+)
Good (700-749)
Average (650-699)
Below Average (600-649)
Poor (Below 600)
Excellent (e.g., New Build, Fire-Resistant, Low-Risk Area)
Good (e.g., Modern Home, Average Risk Area)
Average (e.g., Older Home, Moderate Risk Area)
Below Average (e.g., Older Home, Higher Risk Materials, High-Risk Area)
Poor (e.g., High-Risk Materials, High-Risk Area, Past Claims)
Your Estimated Annual Premium: —
Understanding How Homeowners Insurance is Calculated
Homeowners insurance premiums are not set arbitrarily. Insurers use a complex system of risk assessment to determine the likelihood of a claim and the potential cost of that claim. The goal is to balance providing adequate coverage for homeowners with the financial stability of the insurance company.
While the exact formulas vary between insurance providers, several key factors consistently influence your premium. Our calculator provides an estimation based on these common variables.
Key Factors Influencing Your Premium:
Dwelling Coverage Amount: This is the cost to rebuild your home from the ground up. A higher dwelling coverage amount means a higher potential payout for the insurer, thus a higher premium.
Credit-Based Insurance Score: In many states, a person's credit history is a strong predictor of their likelihood to file claims. Individuals with better credit scores typically receive lower premiums.
Location and Construction: The physical location of your home (risk of natural disasters like floods, wildfires, or high crime rates) and the materials used in its construction (e.g., fire-resistant materials vs. older wood) significantly impact risk.
Deductible: This is the amount you pay out-of-pocket before your insurance coverage kicks in. Choosing a higher deductible generally results in a lower premium, as you are taking on more of the initial risk.
Home Age and Condition: Older homes, especially those with outdated plumbing, electrical, or roofing systems, often carry higher premiums due to increased risk of damage or malfunction.
Roof Age and Condition: A new, well-maintained roof is less likely to cause leaks or damage from wind, lowering your premium. An aging roof is a significant risk factor.
Proximity to Fire Services: Homes located closer to fire hydrants and fire stations are generally seen as lower risk, potentially leading to lower premiums.
Policy Features and Endorsements: Additional coverage options like replacement cost on contents, scheduled personal property, or specific riders for valuable items will increase your premium.
How the Calculator Works (Simplified Model):
Our calculator uses a base rate derived from your Dwelling Coverage Amount and then applies multiplicative factors (or adjustments) based on the other inputs.
Base Premium = Dwelling Coverage Amount * Base Factor (derived from Coverage A factor)
Proximity to Fire Station: Greater distance increases the multiplier.
Final Estimated Premium ≈ (Base Premium) * (Credit Score Multiplier) * (Location/Construction Multiplier) * (Home Age Adjustment) * (Roof Age Adjustment) * (Fire Proximity Adjustment)
The deductible is not directly used in the calculation of the base premium in this simplified model, but a higher deductible is often *chosen* by homeowners who *receive* a quote and wish to lower it. The factors above are estimations and a professional quote from an insurance agent is always recommended for an accurate premium.
function calculateInsuranceCost() {
var dwellingCoverage = parseFloat(document.getElementById("dwellingCoverage").value);
var creditScoreTier = parseFloat(document.getElementById("creditScore").value);
var coverageASelection = parseFloat(document.getElementById("coverageASelection").value);
var deductibleAmount = parseFloat(document.getElementById("deductibleAmount").value);
var homeAge = parseFloat(document.getElementById("homeAge").value);
var roofAge = parseFloat(document.getElementById("roofAge").value);
var proximityToFireStation = parseFloat(document.getElementById("proximityToFireStation").value);
var baseFactor = coverageASelection; // Using the Coverage A factor as a primary driver related to location/construction
var estimatedPremium = 0;
// — Input Validation —
if (isNaN(dwellingCoverage) || dwellingCoverage <= 0) {
alert("Please enter a valid Dwelling Coverage Amount.");
return;
}
if (isNaN(deductibleAmount) || deductibleAmount <= 0) {
alert("Please enter a valid Deductible Amount.");
return;
}
if (isNaN(homeAge) || homeAge < 0) {
alert("Please enter a valid Home Age.");
return;
}
if (isNaN(roofAge) || roofAge < 0) {
alert("Please enter a valid Roof Age.");
return;
}
if (isNaN(proximityToFireStation) || proximityToFireStation = 750) {
creditMultiplier = 0.85; // Excellent
} else if (creditScoreTier >= 700) {
creditMultiplier = 0.90; // Good
} else if (creditScoreTier >= 650) {
creditMultiplier = 1.0; // Average
} else if (creditScoreTier >= 600) {
creditMultiplier = 1.15; // Below Average
} else {
creditMultiplier = 1.30; // Poor
}
// 2. Location/Construction Factor (Coverage A Selection) – Already a multiplier
var locationConstructionMultiplier = coverageASelection;
// 3. Home Age Adjustment
var homeAgeAdjustment = 1.0;
if (homeAge > 30) {
homeAgeAdjustment = 1.20; // Significantly older
} else if (homeAge > 20) {
homeAgeAdjustment = 1.10;
} else if (homeAge > 10) {
homeAgeAdjustment = 1.05;
}
// 4. Roof Age Adjustment
var roofAgeAdjustment = 1.0;
if (roofAge > 20) {
roofAgeAdjustment = 1.25; // Very old roof
} else if (roofAge > 15) {
roofAgeAdjustment = 1.15;
} else if (roofAge > 10) {
roofAgeAdjustment = 1.08;
}
// 5. Fire Proximity Adjustment (More miles = higher risk, so higher multiplier)
// Let's assume a base multiplier of 1.0 at 1 mile, increasing by 0.05 per additional mile.
var fireProximityMultiplier = 1.0 + (Math.max(0, proximityToFireStation – 1)) * 0.05;
if (proximityToFireStation > 5) {
fireProximityMultiplier += 0.10; // Additional buffer for longer distances
}
if (proximityToFireStation <= 1) {
fireProximityMultiplier = 0.95; // Closer is better
}
// — Final Calculation —
estimatedPremium = initialPremium * creditMultiplier * locationConstructionMultiplier * homeAgeAdjustment * roofAgeAdjustment * fireProximityMultiplier;
// Apply a general "administrative/profit" factor, e.g., 15%
estimatedPremium *= 1.15;
// Ensure premium is not unreasonably low or zero
if (estimatedPremium < 500) { // A reasonable minimum baseline
estimatedPremium = 500;
}
// Display the result, rounded to two decimal places
document.getElementById("result").querySelector("span").textContent = "$" + estimatedPremium.toFixed(2);
}