The recent outcry against home insurance renewals and cancellation notices, particularly in high-risk areas, signals the need for consumers to thoroughly understand how insurance works — including how it’s priced.

Several factors influence a property’s insurance premiums. Some of these are issues that property owners can address; others are outside an insured’s control.

The New York State Department of Financial Services advises consumers that the following factors can affect the cost of home insurance:

  • Location, age and type of building;
  • Proximity of fire protection services;
  • Deductible selection;
  • Premium discounts; and
  • Scope and amount of insurance coverage.
“A brick building is more resistant to fire than a wood frame building and, consequently, costs less to insure against fire. A building’s location also has a bearing on the cost of fire coverage, because some communities have better fire protection than others do. In addition, a home located in a community having a higher incidence of crime and vandalism also affects the cost of insurance,” the NYDFS says.

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Elana Ashanti Jefferson

Elana Ashanti Jefferson serves as ALM's PropertyCasualty360 Group Chief Editor. She is a veteran journalist and communications professional. Reach her by sending an e-mail to [email protected].