What Is Homeowners Insurance Based On? 
The actuary is a person in an insurance company that compiles mountains of data from previous claims . From this information they develop a standard rate . The underwriter is a person in the insurance company that reviews the application to see if it meets the requirement of the standard rate . The underwriter may adjust the rate further or decline a home based upon their review . The standard rate is based on the location of the dwelling , the construction of the dwelling , the cost to replace the dwelling , and the presence of unusual hazards -LRB- trampolines , swimming pools and derelict autos . -RRB- One factor that few consider is the presence of a pet . Some pets have a statistically significant risk of lawsuit . Another hazard is the placement of an evaporative cooler . When they are located on the roof they frequently result in water damage claims . Another consideration is the pitch of the roof . As you can see there are a number of variables that the underwriter must consider . That is why they frequently request photographs of the house . 