Cost of Homeowners Insurance

Cost of Homeowners Insurance

Homeowners insurance can give you peace of mind by protecting your home and personal items in the event of a disaster. Of fact, you may have a policy for a few years—or even longer—so it’s a good idea to weigh your alternatives and get the coverage you require at a price that matches your budget. Here are some pointers on how to find the best homeowners insurance rates to get you started.

TAKEAWAYS IMPORTANT

  • Your home, personal items, and liability claims are all covered by homeowners insurance.
  • In the United States, the average annual cost of homeowners insurance is around $1,200.
  • You can obtain prices either online or by speaking with a home insurance agent directly.
  • To be sure you get the greatest coverage for your money, request at least three quotations.
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What Is the Cost of Homeowners Insurance?

According to the National Association of Insurance Commissioners, the average annual premium for homeowners insurance is $1,211 nationwide (NAIC).

Of fact, depending on details about you and your house, including its location, your rate could be more or cheaper than the average. Based on the same report’s statistics, here’s a breakdown of the average homeowners insurance rate per state.

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State Average Premium
Alabama $1,403
Alaska $950
Arizona $847
Arkansas $1,357
California $1,040
Colorado $1,539
Connecticut $1,530
Delaware $842
District of Columbia $1,284
Florida $1,943
Georgia $1,234
Hawaii $1,108
Idaho $736
Illinois $1,061
Indiana $1,010
Iowa $970
Kansas $1,543
Kentucky $1,093
Louisiana $1,889
Maine $867
Maryland $1,044
Massachusetts $1,510
Michigan $969
Minnesota $1,349
Mississippi $1,558
Missouri $1,301
Montana $1,207
Nebraska $1,455
Nevada $778
New Hampshire $977
New Jersey $1,216
New Mexico $1,028
New York $1,309
North Carolina $1,037
North Dakota $1,236
Ohio $864
Oklahoma $1,834
Oregon $690
Pennsylvania $903
Rhode Island $1,553
South Carolina $1,264
South Dakota $1,191
Tennessee $1,187
Texas $1,819
Utah $699
Vermont $929
Virginia $988
Washington $866
West Virginia $921
Wisconsin $765
Wyoming $1,234
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Source: National Association of Insurance Commissioners

Which Factors Influence Homeowners Insurance Rates?

There is no such thing as a one-size-fits-all price for homeowners insurance rates. Instead, insurance firms base rates on a number of personal and property-related characteristics, such as:2

 

  • The deductibles and coverage limits you select
  • The home’s age, construction, and condition
  • The price of a new home (not the same as what you paid for it)
  • The location of the house (rates are higher in areas prone to natural disasters) and how close it is to a fire station (rates tend to be lower if you’re close to one).
  • Crime rates in the area (rates may be higher in areas prone to burglaries)
  • If you have any dogs, what breed(s) do you have?
  • If you run a business from home,
  • If you’ve recently repaired or refurbished your home,
  • Smoke detectors and deadbolt locks are examples of security features.
  • If there is a wood-burning furnace, a swimming pool, or a hot tub in the house,
  • Your marital status, claims history, and credit history are all factors to consider.
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Because each insurance company weighs these characteristics differently, quotes will differ from one provider to the next, even if the data about you and your house stay the same.

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How to Get a Quote for Homeowners Insurance

Compare at least three quotes before making any decisions to ensure you obtain the best coverage for your money. Make sure each quote is based on equivalent policy limits, deductibles, and endorsements for an apples-to-apples comparison.

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When you’re ready to compare homeowners insurance quotes, you have a few options:

  • Request an estimate for homeowners insurance online or over the phone.
  • Collaborate with a captive insurance broker.
  • Consult with a self-employed insurance agent or broker.

Online or over the phone, get a quote for homeowners insurance.

A free online quotation request form is available from many insurance firms. You may need to speak with an agent over the phone to complete the quote—or to clarify anything you don’t understand—depending on the organization.

You may acquire numerous offers at once utilizing one of the house insurance comparison sites to save time and effort. Two of the more respected sites that advertise real-time, accurate quotations are Insurify and Policygenius.

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Collaborate with a Captive Insurance Broker

A captive insurance agent works for a single insurance company like Amica Mutual, State Farm, or USAA. These agents can assist you in determining your coverage needs and explaining your insurance alternatives, but you are limited to the products offered by that one provider.

If you don’t like or qualify for the items offered by that company, the agent may not be able to offer you any alternatives.

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Captive agents, on the other hand, tend to know their products extremely well because they represent only one insurance company—something that not all independent agents and brokers can claim.

 

Work with a Broker or an Independent Insurance Agent.

If you want more house insurance options, an independent insurance agent or broker is a good choice. Because independent agents and brokers work with a variety of insurance firms, they can offer a larger selection of plans.

Keep in mind that captive agents and brokers are unable to quote products from insurance firms that use only captive agents. So just because you’re working with an independent agent or a broker doesn’t imply you’ll be informed about all of your possibilities.

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How to Lower the Cost of Homeowners Insurance

There are a few ways to make your premium more budget-friendly, regardless of the company and coverage you choose. Here are a few ideas to get you started:

  • Increase your deductible—The larger your deductible, the lower your insurance costs will be (and vice versa).
  • Bundle your plans—Most insurance providers will give you a discount if you bundle your home and auto insurance policies.
  • Insure to rebuild, not to purchase—The cost of rebuilding your home is not the same as the cost of purchasing it (the purchase price includes the value of the land). Because the land isn’t at risk of fire, theft, or other perils, your coverage limits should be based on rebuilding expenses.
  • Inquire about savings if you’re 55 years old or older, retired, working from home, a nonsmoker, or a first-time purchaser. Similarly, if your home has specified safety devices (like as smoke detectors and deadbolt locks) or modifications that make your home more disaster-resistant, you may be eligible for a discount.
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