Home Insurance Cost

How Much Does Homeowners Insurance Cost?

(Not too much. Not too little. But, juuuuust right)

Christine Lacagnina | July 22, 2018
Cozy new cottage home

You love your home, so you know that it's important to get it protected with legit homeowners insurance. But how much is it gonna cost you? 

Our independent insurance agents shop and compare policies from multiple carriers to find the right coverage at the best possible price. Plus, they'll also break down any fancy insurance words to make sure you know what you’re paying for.

So let’s start with a little insight into exactly how insurance companies decide what to charge you. 

How Homeowners Insurance Costs are Calculated

The math whizzes at the insurance company start by reviewing a list of risk factors (things like size, location, etc.) associated with providing specific types of coverage.

These risk factors all have scientifically proven costs associated with them. They add up the ones that apply to you, add a bit of profit margin, hit enter and—ding—your rate is ready. 

NOTE: The cost of your coverage might change over time, as the financial demands of offering the plan may increase. Just a heads-up.

Cost By State

Find out what the average homeowners insurance premium is in your state.

Insurance premium
 

What Is Homeowners Insurance and Why Do I Need It?

Homeowners insurance is a contract between you and the insurance company. And it’s basically as simple: You give them a set amount of money, and in return, they help protect you from damages and liabilities that are covered under your policy. Pretty simple, and totally worth it.

Accidents will happen, so It's important to protect your home and the things in it from the unexpected. Your insurance policy will cover a number of things, like property damage, liability, regionally popular natural disasters, and a whole lot more. If you ever have any questions, your agent can help you nail down exactly the type of coverages you need.

What Kind of Homeowners Insurance Coverage Do I Need?

As rewarding as home ownership is, sometimes you will spend sleepless nights gripped in fear of the unknown. So whether it's misfit vandals or high winds, the right coverage can help take some worry off your mind. In general, a garden variety homeowners insurance policy should include these coverages:

  • Property damage: Protects your house and the stuff inside it. Severe storms, fires and other bad stuff can really leave your home a mess. 
  • Natural disasters: Protects beyond the basic severe weather. Think about the more offensive stuff like floods or earthquakes—which are not typically covered by a basic plan. Talk to your agent about adding coverage for these, just in case.
  • Liability: Protects you financially if an accident-prone visitor gets hurt on your property and throws a bunch of medical bills and a  legal suit your way. 
  • Extra money for living: Protects you with financial compensation if you need to get repairs done or rebuild entirely and you’re without a roof over your head. Many policies cover the costs of temporary lodging (like hotels) and additional basic living expenses, like groceries.

What Factors Influence the Cost of My Plan?

When an insurance company is calculating your rates, they look at quite a few different factors. Among those factors are things like: 

  • Your home’s value
  • Your home contents’ values (including collectibles and bling)
  • Your address (as stated on the home title)
  • Your home’s materials (i.e. if it's made of hay, sticks or bricks)
  • Your square footage
  • Your home’s age (depreciation in value will be considered)
  • Your home’s repair/renovation history
  • Your home’s safety devices (like smoke detectors, fire extinguishers/sprinklers, etc.—these could help reduce the cost of your coverage)
  • Your home’s security features (like deadbolts, burglar alarms, vicious attack dogs, etc.—these could also help reduce the cost of your coverage)

How Much Does Homeowners Insurance Cost?

For the most part, the cost of your homeowners insurance policy depends on your home’s location, size, value and a few other factors. But depending on your needs, you might also want to add on a few additional types of coverage. Talk with your agent about your concerns. For starters, though, here are a coupla celebrity examples:

  • If you're like Napoleon Dynamite and have a modest single-family home nestled in the remote valleys of Idaho, you might only pay $600-700/year for coverage. 
  • If you're more like Anne Rice and retired from sultry vampire fiction to a McMansion along the hilly seaside of La Jolla, California, you might pay $1,000-1,500/year for coverage (even while your bridge club buddy down the coastline pays $2,300/year).

How Does My Location Influence the Cost of My Plan?

Just like everything else, homeowners insurance costs depend a lot on where you live. Florida is typically the most expensive state for homeowners insurance, due to its proximity to Disney World and its frequent dirty dances with Mother Nature. On the flipside, Hawaii, AKA Mother Nature's BFF, is the cheapest state for homeowners coverage.

The following factors influence the costs associated with your location:

  • Frequency of storms and severe weather
  • Flood zones
  • Risk of wildfires
  • Crime rates
  • Your town's ability to deal with these hazards (i.e., if there's an awesome fire-fighting department and B.A. police force, this could reduce your rates)

Connect with an Independent Insurance Agent to Compare Rates

Comparing policy rates by yourself can be complicated and there are a lot of big nuggets to digest. That’s where an agent comes in handier than duct tape—they'll know everything that's important to consider when comparing rates.

Our independent insurance agent can make your life all sorts of easier—at least through this process. Since they're not tied down to one insurance company, they're free to shop, compare, and assemble all the pieces of the coverage puzzle for you.

The Lowdown on Online Quotes

Look, we know what you want—quick and super-easy homeowners insurance quotes in under a minute. We get it, you dig instant gratification. However, choosing lightning-fast speed could mean sacrificing accuracy...which could end up costing you.

Other online companies might leave out options that'll save you some serious green, while conveniently leaving in factors that assume higher risk and calculate a pricier policy. And that’s no fun.

Plus, our competitors might also sell your precious info to multiple companies, which could lead to a bunch of unwanted voicemails from unknown numbers. We grabbed the mic and gave it to YOU by providing the info and options to connect with an independent insurance agent when YOU are good and ready.

TrustedChoice.com Article | Reviewed by Paul Martin

Now, who's ready to get their insurance problems solved?