Sources & Assumptions — Homeowners Insurance Estimator

Methodology

Our goal is to give you a clear, defensible estimate you can sanity‑check against real quotes. Below we spell out the inputs we use, the math we apply, what the numbers mean, and how you can verify or replace them.

What goes into the estimate

National baseline: A single annual premium starting point (USD) that reflects the typical cost of homeowners coverage across the U.S. In code, this is the NATIONAL_BASELINE constant. It can be updated as new market data becomes available.
State multiplier: A factor for each state capturing relative pricing (e.g., coastal wind or wildfire exposure). These load from /data/state-multipliers.json when present, or fall back to placeholders. You can supply your own vetted file to improve accuracy.
Your inputs (risk factors): dwelling coverage tier, deductible, roof age/material, claims in the last 5 years, and location risk (inland / standard / high wind‑hail / wildfire‑prone).

How the calculation works

We multiply a baseline by a state factor and by the product of your selected risk factors. This keeps the math simple, transparent, and easy to audit.

Estimated Annual Premium = Baseline × State × Coverage × Deductible × Roof × Claims × Location

Example (illustrative)

Suppose the current baseline is $1,800, your state factor is 1.10, and you select $250k dwelling (factor 1.00), $1,000 deductible (1.00), 6–15 year roof (1.00), no claims (1.00), and standard location (1.00). The estimate would be:

$1,800 × 1.10 × 1.00 × 1.00 × 1.00 × 1.00 × 1.00 = $1,980 (annual) ≈ $165/month

Values shown are examples; your selections and state factor determine the output you see on the page.

Data provenance & transparency

State factors: Ship with placeholders (1.00) so the tool works everywhere. For better fidelity, replace them with a vetted source (e.g., summarized NAIC HO‑3 indices) by providing /data/state-multipliers.json.
Versioning: The multipliers file can include meta.updated and meta.source. When present, the estimator displays a green “Data loaded” badge with the date so you know exactly what’s in use.
Local control: If you upload a JSON in the browser, we store it locally (not on our servers) and use those values until you clear them.

Quality checks we run

Inputs are validated before calculation; the UI guards against missing elements and binds events once.
The breakdown panel shows every factor used in the final number so you can verify the math in seconds.
State‑page URLs auto‑select the correct state and share links preserve the exact scenario via the query string.

Limits you should know about

This is not an insurance quote or an offer of coverage. Actual pricing depends on underwriting, rating territories, construction, protection class, discounts/credits, and carrier rules.
Catastrophe exposures and market conditions change; keep state factors current for best results.
Some carriers apply special deductibles (e.g., wind/hail percentages) that are not fully represented by the simple factors here.

How to verify or improve accuracy

Source a current benchmark for homeowners premiums by state (e.g., public regulatory summaries or industry reports).
Convert those to relative factors (state ÷ national) and save as /data/state-multipliers.json with an updated date.
Re‑test a few scenarios against quote ranges from multiple carriers or agents; adjust only the state factors (not the user‑visible multipliers) to stay consistent.

Privacy & data handling

Calculations run in your browser; we do not transmit your inputs to a backend. We use Google Analytics and AdSense and respect your consent preferences (Consent Mode v2). See Privacy for details.

Contact & feedback

Questions, corrections, or data you'd like us to review? Email everydayroyalties@gmail.com.

How to Read Regulatory and Industry Sources

Many of the documents listed on this page are written for actuaries, regulators, or industry analysts. When you open them, it can help to scan for sections on deductibles, catastrophe exposure, or claim frequency trends rather than trying to digest every table. Those sections often give useful clues about why premiums in your area are rising, flattening, or falling.

Turning Complex Reports into Simple Questions

When you see unfamiliar terms in regulator or rating agency reports, you do not have to become an expert overnight. Instead, you can turn them into a short list of questions for your agent—for example, how catastrophe models affect your area or why certain materials receive credits or surcharges. This site aims to give you enough context to ask those questions with confidence.

Balancing National Data with Local Experience

Many of the reports referenced on this page describe national or regional trends. Those big-picture views are useful, but they do not replace the on-the-ground knowledge of local agents and contractors. Combining both perspectives—broad data and local experience—gives you a more complete picture of why premiums look the way they do in your neighborhood.

Keeping Perspective When Reading About Catastrophe Losses

Industry reports often highlight large, headline-grabbing catastrophe events. While these losses can influence premiums, they do not mean that every homeowner will experience similar damage. As you review these documents, remember that your own risk is shaped by your home's location, construction, and mitigation efforts as well as broader regional factors.

Interpreting Charts and Graphs in Insurance Reports

When you encounter charts showing premium trends, loss ratios, or catastrophe losses, it can help to focus on the overall direction rather than individual data points. Ask yourself whether the trend is flat, rising, or falling and over what time frame. That simple lens often reveals more than trying to analyze every small fluctuation.

Saving Sources for Future Insurance Checkups

When you find a particularly clear chart, article, or regulatory bulletin, consider bookmarking it in a folder dedicated to home insurance. During your next annual review, you can revisit those materials to see how conditions or recommendations have changed and adjust your expectations accordingly.

Comparing Multiple Sources Before Drawing Conclusions

No single report can capture every nuance of the home insurance market. When you see a startling statistic about premiums or losses, consider looking for at least one or two additional perspectives—such as regulator summaries, consumer advocacy groups, and industry publications. If they all point in the same direction, you can be more confident in the trend.

Using Local Media to Track Insurance Trends

Local newspapers, radio programs, and online news outlets often report on regional insurance issues, such as major rate filings, carrier exits, or new mitigation initiatives. Combining those stories with the broader reports cited on this page can help you see how national trends are playing out where you live.

Following Footnotes and Methodology Sections

When you read industry or academic reports, the footnotes and methodology sections can reveal important details about how conclusions were reached. Paying attention to sample sizes, time frames, and definitions helps you apply those findings more accurately to your own home and neighborhood.