Most carriers build their underwriting models using a common set of inputs: MLS basics, credit information, and general property files. This approach provides useful baseline data but leaves an important part of the risk picture out of view which is the interior of the home.
A property can present well from the outside and still have conditions inside that drive loss, such as aging wiring, structural issues, or water exposure. These are the kinds of details that standard datasets don’t typically capture.
Home Factors address that gap. At their core, they’re simple binary indicators (1/0/.5) tied to interior and structural characteristics that have clear loss correlations.
A few common examples:
- Foundation repair or replacement → water and structural risk
- Water heater on an upper floor → non-weather water & CAT exposure
- Electrical panel under 100 amps → fire peril signal
How Carriers Are Using Home Factors
Underwriting
Carriers are incorporating Home Factors to make more informed decisions earlier in the process. Interior condition signals can be used for knock-outs, targeted inspections, or renewal decisions—reducing uncertainty and speed up binding.
Rating and Pricing
Home Factors support more refined pricing strategies. Carriers can apply higher rates to higher-risk properties and offer lower rates to well-maintained homes, improving both risk selection and competitiveness.
Reinsurance
Condition visibility can strengthen reinsurance negotiations by demonstrating lower PML and increasing confidence in book quality. This additional transparency supports better terms and pricing discussions with brokers and reinsurers.
Beyond Underwriting
Because the factors are standardized, other parts of the business such as claims and marketing can use the same signals to support operational efficiency, risk mitigation, or targeted outreach.
Coverage and Scale
Home Factors are currently available on more than 90% of U.S. homes, creating a broad and consistent layer of property-level insight that can be applied across underwriting and pricing strategies. The signals are built from multiple operational data sources, standardized at the address level, and designed to integrate with existing carrier workflows.
The number of available factors continues to expand, with close to 100 expected by the end of 2025.
Proof Point
A Porch-affiliated reciprocal, Homeowners of America, attributes part of its strong combined ratio performance in a challenging state (Texas) to incorporating Home Factors into its underwriting and pricing strategy.
By factoring in interior condition data, they’ve been able to identify segments with better risk performance and align pricing accordingly.
If you want to see the impact in your own book, start with a test. A proof of value can quickly reveal which Home Factors drive the most meaningful improvements in underwriting, pricing, and loss performance.