How do you calculate home insurance?

Answer by  Avidiva (82)

Home insurance is calculated by your insurance company and is based on the replacement cost of your home. Your policy includes coverage for your dwelling and personal property, but the land is not included in the quote as your land is not covered. Your mortgage company can give you a good faith estimate and some do sell insurance.

Answer by  RobertB (111)

The square footage and quality level of the house is used to calculated replacement cost (if the house was rebuilt today, what would it cost?). In addition to the replacement cost, endorsements are added to the policy. Endorsements are optional additions to the insurance policy such as coverage for mine subsidance, earthquake, or backup of sewer and drain.

Answer by  Rubberchicken (819)

Hazard Insurance, or Homeowner's Insurance is calculated by your insurer and if you escrow your coverage, your mortgage company will pay the premium directly for you.