If you’re budgeting for a new home, it’s important to incorporate the average cost of home insurance. Insurance rates are composed of many factors, and knowing these factors can help you estimate the potential expense.
Here is a quick guide to the variables determining the average cost of homeowners insurance:
Home location & age
Homeowners insurance cost is partially determined by certain aspects of the home itself. The biggest factors include location, age and condition. If your home is located in an area prone to extreme weather or other potentially damaging conditions, it’s considered a higher risk to the insurer and may incur a higher premium.
Older homes are more likely to need repairs, and those repairs can cost more. Similarly, if your home’s condition is less than ideal, your insurance premium may be higher as a result.
Coverage details
There are several variables in your policy that go into the average homeowners insurance cost. The most important variables are:
- Deductible amount - Deductible amount affects how much you pay monthly and how much you may need to pay out of pocket for a claim. A higher deductible means a lower premium cost, but a higher out-of-pocket cost if you need to file a claim.
- Dwelling coverage amount - The portion of your policy that protects the physical structure of your home can vary based on size, condition and age of your home.
- Personal property coverage amount - Also included in your average insurance cost is protection for the value of your personal belongings, such as clothing, furniture and appliances.
Other factors
There may be other factors that impact the cost of homeowners insurance. Some of these are related to your home and lifestyle, like whether you have a pool, trampoline or aggressive pets. Others might concern your financial history, including credit score and past insurance coverage.
If you want more details about what goes into the average cost of home insurance, consult your insurance provider.
About the Author
Natalia San Filippo
Greetings from beautiful Naples Florida! Having grown up in Siberia, in a challenging environment I have a deep appreciation of our wonderful Southwest Florida climate and lifestyle. The journey that led me here has fueled my drive to be the best at everything I attempt. My natural enthusiasm for my work is contagious, and clients know that I am "giving my all”. My deep dedication to my family that includes my two adult children and my four fabulous grandchildren. My family reminds me every day that considering family first in one’s life requires an exceptional "home base” for everyone to gather for events and holidays. Everything in my life has equipped me to be a fabulous realtor at Premiere Plus Realty. Naples is cosmopolitan and international harmonious environment, positive energy and lifestyle. As a certified yoga instructor, I believe in and understand the importance of balance in one’s life. It’s through my yoga practice that I have achieved peace and harmony in my life. It’s this peace, harmony, and enthusiasm that I wish to pass to my clients. My goal is to continue to serve you!!! It is my mission! It is my goal! Let’s get to work together! Natalia Realtor, specializing in Residential sales, New construction, seasonal rental, VA homes, First home buyers, listings, sales. Member of Miami and Stella MLS. I service Naples, Bonita Estero, Marco Island & Ft. Meyer's as well as SW Florida. I appreciate referrals and I help with referrals in other States.