When determining home insurance rates, insurance companies consider various factors, including the property’s square footage. “Home insurance rates by square footage” refers to the practice of calculating premiums based on the property’s size, as larger homes generally require more coverage and pose a higher risk to insurers.
The correlation between square footage and home insurance rates stems from the increased likelihood of larger homes containing more valuable belongings, requiring more extensive coverage. Additionally, larger homes may have additional features, such as pools or guest houses, which can further elevate the risk profile and, consequently, the insurance premiums.
