Insurance premiums (the amount you pay for your policy) are based on risk—such as the property’s age, condition, location, size, and other factors. Generally, higher risk leads to a higher premium, and lower risk results in a lower premium.
To calculate your premium, factors such as area loss history, your postal code, and local ratings for risks like crime and fire, along with your individual details, are considered.
Keep in mind that insurance premiums can vary from person to person—even for those living in the same building, neighbourhood, or with similar homes—because they are based on unique risk factors and personal details.