Homeowners insurance coverage is a crucial form of property insurance that can help in shielding you financially from any damages to your house. This means that if any issue occurs to your furnishing, place of residence, or other covered assets in your home, your insurance company should foot most of the bill.
However, homeowners insurance is not without its problems. One of the biggest issues is that many people simply take the premium quote of their insurance company as the correct price without carrying out any further investigation. This often leads to heaps of people overpaying their insurers. According to S&P Global, the average monthly premium for homeowners insurance coverage in the United States is $84.50. However, this value will likely change depending on several factors which we will explore in this post.
What Affects the Price of Homeowners Insurance Coverage?
The price you pay for your homeowners insurance premiums may change depending on the following factors:
The Value of The Homes Around You:
Naturally, if the homes in your area are of higher value than the average price of homes in your state, then you should expect to pay more in monthly premiums. This is because it would cost more to replace your home if it was to experience any damage. According to a report released by the National Association of Insurance Commissioners (NAIC), houses that are valued at $500,000 or more typically pay $179 per month in premiums. However, houses valued at $49,999 or less will pay about $54.
Likelihood of Disaster:
The price of your premiums will also depend on the chances of natural disasters occurring in your area. If your home is in a state or city that is likely to face flooding, earthquakes, or tornadoes, then be prepared to shell out more in premiums than your lower-risk neighbors.
The Age of Your Home:
If you live in an older home, you should also be prepared to pay more in monthly premiums. This is because safety standards have changed over the years, and it would cost more to get an older house up to scratch if your insurer is to rebuild it than a newer house.
Several other factors affect the price you pay for homeowners insurance coverage per month, such as:
- The deductible you choose
- Your roof’s condition
- Previous claims made on the house
How Can I Save Money on Homeowners Insurance Coverage?
The good news is that you do not have to move out of state or change houses to pay less for your homeowner’s insurance. There are several things that you can do to reduce the price of your premiums such as:
- Make your home safer by adding security features e.g., smoke detectors, storm shutters, sprinkler systems, etc.
- Bundle your insurance policies.
- Raise your deductible.
- Look for a different company
Contact Hosto Financial & Insurance Services To Find Homeowners Insurance Coverage
Understanding the basic types of home insurance is critical to making any home insurance decision. Once you understand the different coverage levels and policy add-ons, you can begin to determine what your needs and desires are when making your homeowners insurance coverage decision.
If you are seeking advice about getting home insurance, give us a call at (618) 779-5808.
Is there a way to lower the cost of homeowners insurance? Find out here.