As an informed consumer, you should understand how the cost of a homeowners policy is determined. Also, certain underwriting factors determine if an applicant for a homeowners policy is acceptable. Major rating and underwriting factors include the following:
Age of the home
Type of policy
Loss history report
Construction of the home is an extremely important rating factor. The more fire-resistant the home is, the lower the rate. Thus, wooden homes cost more to insure than brick homes. However, earthquake insurance costs are substantially less for wooden homes.
Location of the home is another important ...