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 or co-op, your insurer will not consider the size of the dwelling or building costs. However, the insurance company will take into account factors that make damage to your possessions more likely.