What criteria do insurance companies use when determining the cost of home insurance policy premiums?

The factors can vary by jurisdiction (for example, some states do not allow "credit" to be used in rate determination) but as a general rule the following criteria are used: * Fire protection rating as determined by ISO (how effective your local fire department and fire safety codes are) * Age of home * Construction type (e.g. frame or masonry) * Roof type (e.g. composition shingles, tile, or tar/gravel) * Credit or "insurance" score of the named insured * Prior claim history of the named insured (many insurers do not surcharge for prior home claims, but ALL use them to determine eligibility) * Expected loss frequency and severity of your local area Property insurance can be a volatile line of business for insurers (think Katrina...) and rates will vary greatly between insurers and from area to area. Call several agents or independent brokers to compare rates. You might find that smaller regional companies are priced better than the larger national insurers. In my experience, they often handle claims better and faster too. Your state insurance commissioner will also be happy to answer consumer inquires about insurance laws, rating and specific insurer complaint ratiOS.