There are many factors an insurance company uses to determine the price of your policy:
*The square footage of the house and any additional structures.
*Building costs in your area.
*Your home's construction, materials and features.
*Amount of crime in your neighborhood.
*The likelihood of damage from natural disasters, such as hurricanes and hail storms.
*The proximity of your home to a fire hydrant (or other source of water) and to a fire station, whether your community has a professional or volunteer fire service and other factors that can affect the time it takes to put out fires.
*The condition of the plumbing, heating and electrical system.
If you rent your home or own a condo/co-op, your insurer will not consider the size of the dwelling or building costs. However, it will take into account factors that make damage to your possessions more likely.