Graphic highlighting common factors affecting homeowners insurance rates, such as neighborhood safety and local weather risks.

Ultimate Guide: What Factors Affect Your Homeowners Insurance Rate?

Sam Simon

July 12, 2025

Wondering why your homeowners insurance costs what it does? This ultimate guide breaks down 13 surprising factors—like crime rates, dog breeds, home construction, and even your credit score—that impact your insurance premium. Learn what drives your rates and how you can potentially lower them.

When you buy homeowners insurance, you probably focus on what's covered — fire, water damage, theft, storms. But many homeowners overlook an equally important question: What determines how much I pay?

Insurance premiums don’t come out of thin air. They’re carefully calculated using a mix of personal, property, and regional factors that help insurers estimate your risk. In this ultimate guide, we break down 13 surprising and common factors that affect your homeowners insurance rate — and how you can (sometimes) reduce your costs.

1. Crime Rates in Your Area

If you live in a neighborhood with high crime rates—particularly burglaries, vandalism, or arson—you can expect to pay more. Insurers view your property as higher risk and charge accordingly.

💡 Tip: Installing a home security system or smart locks can sometimes qualify you for a discount.

2. Weather and Natural Disasters

Homes in areas prone to severe weather—like hurricanes, tornadoes, floods, or hail—usually have higher premiums. Chicago homeowners, for example, may see higher rates due to heavy rainstorms or flash floods.

💡 Tip: Check if your home qualifies for wind or flood-resistant upgrades to reduce risk.

3. Home Value and Replacement Cost

A more expensive home costs more to insure—not because of market value, but because of how much it would cost to rebuild after a disaster. This includes materials, labor, and specialized construction (like historic details).

4. Neighborhood Characteristics

Did you know your ZIP code matters? Proximity to busy roads, local building codes, school district rankings, and community infrastructure can all factor into your rate.

5. Construction Materials

Brick or masonry homes usually cost less to insure than wood-frame homes, which are more flammable. The type of roof, plumbing, and electrical systems also play a role.

6. Dog Breed (Yes, Really)

If you own certain breeds that are considered “high risk” (like pit bulls, Rottweilers, or Dobermans), your insurance may include a dog liability surcharge—or exclude dog-related claims altogether.

7. Type of Stove or Heating System

Homes with wood-burning stoves, fireplaces, or older heating systems can carry a higher fire risk and may increase your premium.

8. Marital Status

Statistically, married couples file fewer claims, so many insurers offer slightly lower rates if you’re married.

9. Insurance Score

Not to be confused with a credit score, your insurance score is a proprietary calculation that predicts the likelihood you’ll file a claim. It’s often based on your credit history and past insurance behavior.

10. Distance to Fire Department or Hydrant

Living close to a fire station or hydrant can reduce fire risk—and lower your rate. Rural homes farther from emergency services often cost more to insure.

11. Proximity to a Coast, River, or Lake

Waterfront properties or homes near bodies of water face higher risks of flooding, hurricanes, or erosion damage.

12. Credit History

Many insurers use credit-based insurance scores to assess risk. Poor credit can mean higher premiums, even if you’ve never filed a claim.

13. Claims History

Frequent or recent insurance claims—whether for water damage, theft, or liability—can mark you as a higher-risk customer and increase your rate.

How Can You Lower Your Homeowners Insurance Premium?

✅ Bundle your home and auto insurance
✅ Install security devices (alarms, cameras, deadbolts)
✅ Upgrade old wiring or plumbing
✅ Maintain a good credit score
✅ Avoid small claims that could raise your rates later

Why It Matters: Protecting What You’ve Built

Understanding these factors isn’t just about saving money — it’s about protecting your most valuable asset.

Want to learn more about protecting your home? Check out our book, RESTORE: A Complete Guide to Protecting Your Home As Your Most Valuable Asset — your go-to resource for fire, water, and disaster preparedness.

About ServiceMaster Restoration By Simons

With over 40 years of trusted service in Chicago, the North Shore, Lake County, and DuPage County, ServiceMaster Restoration By Simons is Chicagoland’s leading expert in fire, water, mold, and specialty restoration. Our IICRC-certified team provides 24/7 emergency services to help homeowners recover from life’s unexpected disasters.

We serve: Chicago, Evanston, Wilmette, Kenilworth, Winnetka, Glencoe, Highland Park, Lake Forest, Lake Bluff, Northbrook, Glenview, Northfield, Deerfield, Riverwoods, Bannockburn, Skokie, Oak Park, River Forest, and more.

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FAQ: Homeowners Insurance & Restoration

Q: Will filing a claim automatically increase my premium?
A: Not always, but multiple claims or certain types of claims (like water damage) can raise your rate.

Q: Do insurance companies check credit scores?
A: Many do, using a credit-based insurance score that factors into your premium.

Q: Can I get insurance discounts for home upgrades?
A: Yes! Ask your agent about discounts for security systems, new roofs, or water shut-off devices.

Sam Simon

Sam Simon is the Co-Owner and Managing Director of ServiceMaster Restoration By Simons, a certified MBE/WBE disaster restoration and specialty cleaning firm proudly serving Cook, Lake, and DuPage Counties in Illinois. With over 30 years of experience in restoration project management, field operations, and emergency response, Sam plays a vital leadership role in overseeing service execution, technician development, reconstruction, and subcontractor coordination.

He holds the IICRC’s highest technical designation as a Master Fire & Water Restorer, a distinction achieved by fewer than 1% of professionals in the restoration industry. His technical scope includes water and flood damage restoration, fire and smoke recovery, mold remediation, and post-disaster reconstruction across both residential and commercial sectors.

Sam has demonstrated a long-standing commitment to helping communities in crisis. He has participated in large-scale disaster recovery efforts across the U.S., providing boots-on-the-ground leadership during Hurricanes Katrina, Sandy, and Harvey, as well as catastrophic floods, wildfires, and deep freeze events throughout Illinois, Indiana, Iowa, Minnesota, Ohio, Texas, and beyond. His dedication to serving distressed families and businesses in the wake of national catastrophes reflects both his personal values and ServiceMaster’s mission of restoring peace of mind.

In 2019, Sam was selected for the HACIA Contractor Training Program, a competitive six-month construction management cohort offered by the Hispanic American Construction Industry Association. The program delivers intensive instruction in blueprint reading, estimating, project management, and construction law—skills that support the company’s continued growth in emergency build-back and general contracting services.

Before co-founding ServiceMaster Restoration By Simons, Sam built a successful creative career under the name Sam Zabadneh, contributing to notable film and television productions including Chicago Fire (2012), Juvies (2007), and Image Union (1978). His media and videography background continues to shape ServiceMaster’s marketing strategy, digital training resources, and brand storytelling.
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Sam is also the co-author of RESTORE: A Complete Guide to Protecting Your Home As Your Most Valuable Asset—a practical guidebook for homeowners navigating the challenges of water, fire, and mold damage.

Under the direction of majority owner and President & CEO Nasutsa Mabwa, and with Sam’s operational leadership, ServiceMaster Restoration By Simons has earned numerous regional and national accolades, including:

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