Your Homeowners Insurance Rate

Determining Your Homeowners Insurance Rate

At Moran Financial Solutions, we understand that insurance rates can be confusing. For many people, insurance is not a fun topic to research. We are here to explain the calculation of insurance rates without putting you to sleep. In this article, learn about how homeowners insurance premiums are determined, factors that affect the cost of homeowners insurance, and ways to save on homeowners insurance in Florida.

Calculating Your Homeowners Insurance Rate

First, let’s talk about how your homeowner's insurance rate is determined. The cost of rebuilding your house is the first factor to consider. If your home is destroyed or damaged by a fire, flood, or another disaster, you should have coverage to build it back to its former glory. Due to construction costs, this typically means that the bigger your home, the higher your insurance rate will be.

Other factors that affect your insurance rate include the age of your home, your personal insurance claim history, the type of coverage you choose, your history with the insurance company, and more. In some cases, pets will impact the calculation of your insurance rate. An insurance company assesses the risk posed by various elements to determine what you will pay for insurance.

4 Factors That Affect the Cost of Homeowners Insurance

Determining Your Homeowners Insurance Rate

4 Factors That Affect Your Homeowners Insurance Rate


Several elements can affect your homeowners' insurance rates. There are some actions you can take to reduce these costs. While some of these factors may seem obvious, others may surprise you.


Home Renovations - A home remodel can cause gaps in your insurance coverage. Various improvements, such as kitchen or bathroom upgrades, can increase your policy rate because the expenses for rebuilding your home in the event of a loss could arise. Be sure to update your insurance after home remodels or significant improvements to avoid a gap in coverage.


A Pool or Trampoline – Owning a pool or a trampoline can affect your insurance rate. Entertaining your kids is a worthy goal, but it is important to consider the impact on your insurance rate. There are extra precautions you can take to mitigate the risk of injury associated with these amenities. It is advisable to install a net around your trampoline and a fence around your pool.


A Wood-Burning Stove – A wood-burning stove impacts your insurance rate because of the elevated risk of fire. However, if you prove to your insurance provider that a licensed contractor properly installed your wood-burning stove, you can often avoid or limit increases in your insurance costs.

A Home Business – Operating a business out of your home may require extra insurance to cover any stored equipment or business inventory. However, in this instance, you can also purchase a business owners policy to cover these items.

These are just a few of the many items that can influence your insurance rate. If you are concerned about getting a Florida homeowners insurance policy that is fair and affordable, you should research multiple plans and work with a reputable insurance company.


Ways to Save on Homeowners Insurance

Homeowners Insurance Rate Savings

Tips to Save on Homeowners Insurance


As you can see, many factors impact your homeowners insurance rate, but there are ways to minimize your costs. For example, you can have a lower monthly payment if you increase your deductible. You can also improve your credit score to reduce your monthly insurance rate. Get multiple quotes before settling on a policy to ensure you are getting the best rate.


Homeowners insurance does not have to be overwhelming. You can get a great rate if you do your research to find the right insurance policy. At Moran Financial Solutions, we pride ourselves on helping people get the insurance coverage they need without breaking their budget. Contact our team today to find the best insurance policy for your home.