Professional services
Homeowners Insurance Calculator
Works homeowners cost, where replacement cost and actual cash value settle claims very differently.
Result
An estimating tool, not insurance advice and not a quote. Underwriting sets real premiums on factors no calculator sees. What cover is appropriate is a question for a licensed broker. Location is by far the largest factor and has become more so: wildfire, hail and coastal wind exposure have driven sharp increases and in some areas withdrawal of cover entirely. Roof age is now a common underwriting condition in hail-prone states, sometimes with a separate percentage deductible for wind and hail.
Get a Free Business AuditHow the calculation works
Dwelling, contents, other structures and liability cover at rates reflecting construction, location and protection, with the deductible chosen, giving annual and monthly cost. The settlement basis matters as much as the limit: replacement cost pays to replace with new, while actual cash value deducts depreciation.
What moves the number
- Settlement basis on dwelling and on contents.
- Rebuild cost and the limits set.
- Deductible, and any separate percentage deductibles.
- Claims and location-based rating factors.
Where this one goes wrong
A roof settled on actual cash value rather than replacement cost can pay a fraction of what replacing it costs, and that distinction has become common in policies without the homeowner noticing. Read the settlement basis for the dwelling and for the roof separately, because they are sometimes different. Contents are frequently the other surprise, since high-value items such as jewellery, instruments or collections commonly have low sub-limits unless specifically scheduled.
Before you quote
- Check the settlement basis for the dwelling and the roof separately.
- Schedule high-value items rather than relying on sub-limits.
- Confirm liability limits against actual exposure.
Where the rules come from
Questions
About this calculator
What is the difference between replacement cost and actual cash value?
Replacement cost pays to replace with new; actual cash value deducts depreciation. A roof settled on actual cash value can pay a fraction of the replacement cost, and that basis has become common in policies without homeowners noticing.
Are valuables covered under contents?
Only to sub-limits, which for jewellery, instruments and collections are commonly low. Items above those limits need scheduling specifically, and discovering the sub-limit after a theft is the usual way people learn it exists.
How much liability cover is appropriate?
Enough that a judgment would not reach personal assets, which for most households means more than the policy default. Liability limits are also what an umbrella policy builds on, and raising the primary limit is comparatively inexpensive.
The formula
premium = cover / 1000 x base rate x location factor x age factor + liability, less deductible credit
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How to use this calculator
- Dwelling cover ($). Enter your own figure; the page starts at $420,000.
- Liability limit ($). Enter your own figure; the page starts at $300,000.
- Deductible ($). Enter your own figure; the page starts at $2,500.
- Location risk. Enter your own figure; the page starts at Moderate (1.0x).
- Age of the home (years). Enter your own figure; the page starts at 28.
- Base rate per $1,000. Enter your own figure; the page starts at 3.5.
The result updates as you type, so you can try a figure, see what it does to estimated annual premium, and change it back. Nothing you enter is sent anywhere or saved.
A worked example
These are the figures the calculator opens with. Every number in the results column below is produced by the same calculation the page runs, so you can follow it through before putting your own figures in.
What goes in
| Input | Value |
|---|---|
| Dwelling cover | $420,000 |
| Liability limit | $300,000 |
| Deductible | $2,500 |
| Location risk | Moderate (1.0x) |
| Age of the home (years) | 28 |
| Base rate per $1,000 | 3.5 |
What comes out
| Result | Value |
|---|---|
| Estimated annual premium main result | $1,399 |
| Per month | $116.59 |
| Loading for the home's age | 6.4% |
| Credit for the deductible | $218.97 |
| Cost per $1,000 of cover | $3.33 |
About $1,399 a year, $116.59 a month, which is $3.33 per thousand of cover. The home's age adds 6.4% and the deductible saves $218.97.
How sensitive the answer is
Holding everything else steady and changing only dwelling cover, this is what happens to estimated annual premium. It is worth knowing which of your inputs the answer actually hinges on, and which barely move it.
| Dwelling cover ($) | Estimated annual premium |
|---|---|
| $210,000 | $726.55 |
| $315,000 | $1,063 |
| $420,000 example above | $1,399 |
| $630,000 | $2,072 |
| $840,000 | $2,744 |
Every other input is held at the example value while this one changes, which is not how a real job behaves. Treat it as a guide to which number matters most, not as five separate quotes.
What each figure means
- Dwelling cover ($)
- A money amount, starting at $420,000.
- Liability limit ($)
- A money amount, starting at $300,000.
- Deductible ($)
- A money amount, starting at $2,500.
- Location risk
- Choose from Low risk (0.7x), Moderate (1.0x), Wildfire, hail or coastal (1.8x), High hazard (2.8x).
- Age of the home (years)
- A number, between 0 and 200, starting at 28.
- Base rate per $1,000
- A number, between 0 and 30, starting at 3.5.
What the results tell you
| Result | What it is |
|---|---|
| Estimated annual premium | The headline result. A money figure. |
| Per month | A money figure. |
| Loading for the home's age | A percentage. |
| Credit for the deductible | A money figure. |
| Cost per $1,000 of cover | A money figure. |
Keep going
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