Average Homeowner Insurance Cost

One of the most important things that homeowners need to consider when buying a house is insurance. Homeowners insurance is a type of insurance that covers damages or losses to a person’s residence and personal property. The cost of homeowners insurance varies depending on a number of factors, such as the location of the house, its age, and the amount of coverage a homeowner wants. In this article, we will explore the average homeowner insurance cost and factors that influence it.

What is Average Homeowner Insurance Cost?

The average cost of homeowners insurance varies depending on the state, the type of coverage, and other factors. According to the National Association of Insurance Commissioners (NAIC), the average annual premium for homeowners insurance in the United States was $1,211 in 2017. However, the cost of homeowners insurance can range from less than $500 to more than $2,000 per year, depending on the state and the level of coverage.

Factors Affecting Average Homeowner Insurance Cost

The cost of homeowners insurance can vary widely depending on a number of factors, including:

Factors
Description
Location
The location of the house plays a significant role in determining the cost of homeowners insurance. Houses in areas that are prone to natural disasters or have a high crime rate are more expensive to insure.
Age of the House
The age of the house also affects the homeowner insurance cost. Older homes are more expensive to insure as they may have outdated electrical and plumbing systems, which can be a risk of fire or water damage.
Size of the House
The square footage of the house and property also affects the cost of homeowners insurance. Bigger houses with more expensive contents require more coverage.
Claims History
A homeowner’s history of claims can also influence the cost of homeowners insurance. If a homeowner has a history of making claims or living in an area with a high frequency of claims, the cost of insurance will be higher.
Credit Score
Many insurers use credit scores as a factor in determining the cost of homeowners insurance. People with good credit scores are believed to be responsible and reliable, and therefore, receive lower premiums.

How to Lower Your Homeowner Insurance Cost?

There are several ways to reduce the cost of homeowner insurance. Here are some tips:

Shop Around

Compare the rates of different insurance companies before buying a policy. Contact at least three companies and get quotes to find the best deal.

Raise Your Deductible

Increasing your deductible can significantly lower your premium. However, make sure you choose a deductible that you can afford to pay if you need to make a claim.

Improve your Home Security

Installing smoke detectors, burglar alarms, and deadbolt locks can reduce your homeowner insurance cost. Insurers usually offer discounts for homes with these security systems.

Remove Hazards

Removing hazards from your property, such as trees near your house or old wiring, can reduce the risk of damage and lower your insurance cost.

Bundle Your Policies

Consider bundling your homeowner insurance with your other policies, such as auto or life insurance. Insurers may offer discounts for bundling policies.

Conclusion

In conclusion, the average homeowner insurance cost varies widely depending on factors such as the location, age, and size of the house. It is essential to compare rates from different insurers and take measures to reduce your insurance cost. By following the tips mentioned in this article, you can lower your homeowner insurance cost and protect your assets.

FAQs

What Does Homeowner Insurance Cover?

Homeowners insurance covers damages or losses to a person’s residence and personal property caused by events such as fire, theft, and natural disasters.

What is Not Covered by Homeowner Insurance?

Homeowners insurance does not cover damages caused by earthquakes, floods, or poor maintenance of your property. It also does not cover damages caused by normal wear and tear.

What Level of Coverage Should I Buy?

The level of coverage you need depends on the value of your property and personal belongings. It is recommended to buy enough coverage to replace your property and belongings in case of a loss.

Can I Change My Insurance Policy?

Yes, you can change your insurance policy at any time. You can increase your coverage, change your deductible, or switch to a different insurance company.

How Often Should I Review My Insurance Policy?

You should review your insurance policy every year to ensure that you have enough coverage and that your premium is still competitive. You should also review your policy if you make significant changes to your property or personal belongings.