The average homeowners insurance cost is $1,899 a year and can vary significantly from state to state. This is based a policy for $300,000 dwelling coverage according to Policygenius’ analysis of home insurer rates in every U.S. ZIP code and state.
Also, it's important to remember that this is only the national average. Your rates can vary a lot depending on where you live and how much insurance you need. Other factors include your credit rating and claims history.
There are several different factors that contribute to the average cost of property insurance. Included in this are the location, age, and amount of insurance you select.
You should consider the deductible because it is the amount you must pay yourself for any damage or loss that occurs before your insurer begins to pay claims. In general, higher deductibles lower your premium. However, you should make sure that the deductible you choose is an amount that you can afford to pay out of pocket in case of an unexpected expense.
You can also reduce the cost of your homeowners insurance by changing the type of roofing you use. Insuring, say, a block-built house is less expensive than one built with wood.
The six types of coverage in a homeowners insurance policy are: dwelling coverage; personal property coverage; liability protection; loss of use coverage; other structures coverage. All these types of coverage protect your belongings, assets and liabilities in the case of a covered disaster such as fire or flooding.
The decision to select replacement cost value over actual cash values (ACV) can be a wise one, since it ensures that your payout will not depreciate with the age of your home. Shop around to find a homeowners' policy that offers an RCV option.
Also, you should consider how much the home is worth. This can have an impact on the price. A policy that covers the full value of your house, including additions and renovations is a wise choice.
Additions coverages are always recommended, even though the majority of policies already include basic coverages. Theft, water damages, and many other add-ons are available to help protect you from a natural disaster.
Comparing quotes from different insurers is the best way to determine which homeowners insurance policy will suit you. It is a free and easy way to find out the average cost of homeowners insurance in your locality, along with the coverage that best suits your needs.
It's always a good idea to shop around before signing a policy, as every insurer prices their policies differently. It's a good idea to compare at least three different quotes to make sure you are getting the best deal on your homeowners insurance.
A good idea is to also inquire about discounts. Some companies will offer discounts if you have multiple policies, or if your home is safe. In addition, you can save on homeowners' insurance by increasing your deductible. Or, by purchasing an umbrella policy with auto, life or other liability coverage.