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.

Since home insurance is required to carry a mortgage, and the mortgage lender pays those premiums, some homeowners may not realize that they have the power to shop insurance providers for the coverage and cost that best suits their needs.

Given the state of inflation — to say nothing of rising insurance costs linked to natural disasters — U.S. News & World Report recently compiled a list of “Cheapest Homeowners Insurance Companies.” The slideshow above highlights the publication’s top picks for affordable home insurance options.

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