Business & Finance

What Is the Average Cost of Home Insurance?

You should get a feel for the average cost of home insurance. That will help you make an informed decision about buying the best coverage for your family. Here are some things to consider:


Older Homes Cost More to Insure Than New Homes

If you have an older home, you may be worried about whether or not you can insure it. Unlike newly-built homes, these homes are more difficult to insure and often have a higher cost.

Older homes are usually built with unique features that can be difficult to replace and require special insurance. It would help if you spoke to a more senior home specialist to determine what coverage you need.

Compared to newer homes, old homes are more likely to have outdated plumbing, electrical systems, and roofs. These problems can be a fire hazard, increasing the cost of repairs.

If you are planning to buy an older home, you should get a thorough home inspection. This will give you an idea of what you should expect regarding additional costs. In addition, an insurance agent can help you find the best policy for your needs.

The average homeowner pays $872 for homeowners insurance in the United States. But several factors affect the premium. For example, if the house is located in an area that experiences extreme weather, it is more likely to be damaged. Also, your credit history and location can play a role.

Coastal Properties are Riskier to Insure than Inland Properties

Having insurance on your property is no small undertaking, especially if you live in an area with hurricanes or tornadoes on the horizon. Coastal properties are also at risk of waves and heavy rains. It’s no wonder that homeowners’ premiums in some coastal locales skyrocketed more than tenfold in recent years.

Fortunately, you don’t have to be a homeowner to secure some coverage. There are plenty of independent agents specializing in the insurance biz. Consider your needs before picking a policy, and make sure you get the best rate. If you need some help, you can call Galt Insurance Group at 1-844-BUY-GALT for a free home insurance quote.

Similarly, the hazard of a flood, or a tornado, can cost thousands of dollars to repair. Luckily, there are a variety of solutions to this problem, including government-subsidized flood insurance for those who qualify. The government also offers an earthquake and wildfire insurance program to protect Americans from the worst that nature can dish out. As of October 2016, these government programs covered 130 million homes.

Your Dwelling Amount

Buying the best homeowners insurance policy for your particular situation is a must. You may save a bundle by purchasing an insurance policy with extended dwelling coverage. If your home is relatively new or you are in an area susceptible to natural disasters, you may be better off purchasing a plan that includes guaranteed replacement costs. A guaranteed replacement cost policy pays to rebuild your home, no matter how much it costs.

The average homeowner’s coverage required to protect their valuables and property is usually less than a third of their total house value. While it can be challenging to figure out precisely what coverage levels are necessary to insure your home adequately, a little forethought will go a long way toward protecting your loved ones.

The best way to find out how much your home is worth is to get a quote from an insurance agent. You may get a free estimate by calling your local real estate agent or home construction company.

Renters Insurance Deductibles

Getting the right renter’s insurance deductible is essential. This is because the deductible is the amount you must pay before your insurer pays for the damages to your property. It also influences your monthly premium. Having a higher deductible means you will have a lower premium.

Renters insurance covers your personal property and any injuries or accidents that may occur in your rental home. Some policies come with additional coverages, such as identity theft or loss of use. These ranges are not required but can be added on if you wish.

Deductibles can be set at $250 or up to $2,000. However, the cheapest deductibles are usually $500. Higher deductibles generally result in lower rates, as insurers have to cover less risk.

The minimum amount of personal property coverage varies from insurer to insurer. Some companies will only insure up to $2,500, while others require you to guarantee at least $20,000.

Your insurance agent can help you decide which coverage is best for you. Invest in a more comprehensive coverage policy if you own expensive electronics or jewelry. You can also extend your range through endorsements.

Low-cost states for Home Insurance

Homeowners’ insurance is an integral part of a financial plan. However, the cost of insurance can vary from state to state. This is because each state has different risk factors and regulations.

For example, the eastern part of Oklahoma is susceptible to widespread flooding and tornadoes. Idaho also has a high risk of wildfires. But despite these dangers, Idaho has the third lowest homeowners insurance premiums in the nation.

Several factors contribute to the cost of home insurance. The amount of coverage you need, the value of your home, and the risk of theft or vandalism are some of the most significant determining factors.

Each state has rules and regulations which may affect your rates. However, most states allow home insurers to base rates on several factors. These include weather conditions in the region, whether there are any natural disasters, and the risk of a claim.

In addition, the location of your home can influence your insurance costs. Rural areas are typically less susceptible to storm damage and crime than cities. Conversely, coastal properties are more vulnerable to hurricanes and flooding than inland properties.