When it comes to homeowners insurance, one of the most common questions is: Do families pay more than individuals? While the answer isn’t a simple yes or no, several key factors tied to family living can lead to higher premiums compared to single-unit or solo property owners. Let’s break down why.

1. Larger Homes, Higher Premiums

Families often live in larger homes than single-unit owners or individuals. More square footage means:

• Higher rebuilding costs in the event of a disaster
  
• More furnishings and personal belongings to protect
  
• Greater liability risk (e.g., for injuries on the property)
  

Because insurance premiums are largely based on the replacement cost of the home and the value of what’s inside, larger homes generally translate to higher premiums.

2. Increased Liability Risks

Family homes tend to have more potential liability risks, including:

• Play equipment (trampolines, pools, swing sets)
  
• Frequent visitors, including children’s friends or relatives
  
• Pets, which may increase liability, especially for certain dog breeds
  

These features raise the chances of someone getting hurt on the property, which can trigger liability claims. That risk is reflected in premium costs.

3. More Belongings = More Coverage

A family of four will likely have more possessions than a single person. Insuring items for replacement value adds to the premium.

• Personal property coverage typically accounts for 50-70% of the dwelling coverage limit.
  
• A higher total value of personal belongings can push this limit higher and, in turn, increase costs.

   

4. Multi-Unit vs. Single-Family Homes

It’s also important to clarify that “single-unit” can mean different things, such as a studio condo or a small house occupied by one person. These types of properties typically come with:

• Lower rebuilding costs
  
• Less liability exposure
  
• Fewer personal items to insure
  

As a result, single-unit or solo owners often pay significantly less—sometimes 20% to 50% less—than family homeowners, depending on the property and location.

5. Home Use and Occupancy

Families tend to use their homes differently:

• More time spent at home can mean greater wear and tear
  
• More appliances in use means greater fire or water damage risk
  
• Home-based activities (like daycare or business) can increase insurance needs
  

These lifestyle factors can impact premium pricing—especially if extra endorsements or riders are needed. Thus, families might pay anywhere from 30% to 100% more in annual homeowners insurance than solo or single-unit property owners, largely due to higher coverage needs and increased risks.

Final Thoughts

It’s not simply the number of people living in a home that drives up insurance costs; it’s the lifestyle, structure size, and risk exposure that come with family living. If you’re looking to reduce your premium, whether you’re a family or single homeowner, consider:

• Installing home security systems
  
• Bundling policies (home + auto)
  
• Raising your deductible
  
• Regularly reviewing and updating your coverage needs

   

Want a personalized comparison? Get a quote from Valon Insurance’s trusted partner, VIU by HUB, to estimate what your household size and home type might cost in different scenarios.