How much is homeowners insurance?
Homeowners insurance costs between $600 to $1,300 a year. The price could vary based on many factors. Not all insurance policies are the same or offer the same coverage.
It’s important to do your homework and know what your buying when you’re trying to figure out how much does homeowners insurance cost.
A simple Google search of how much should home insurance cost wont get you the answers you need. Just as asking your 3 best friends how much they pay for their home insurance wont get you the answers you need.
The best way to figure out how much does house insurance cost is to speak with a knowledgeable independent agent. They can sit down with you and accurately find out how much home insurance you need and what specific coverage you need. Then they can search multiple insurance companies and find the best price for homeowners insurance along with the best coverage.
How is homeowners insurance calculated?
Home insurance is calculated using many factors. The age of the home, the value of the home, updates on the home and even who lives in the home. No two homes are exactly the same when it comes to rating insurance costs.
If you’re trying to figure out how to calculate home insurance cost there are a few things to take into consideration:
- When was the home built
- What has been updated since it was built
- How much would it cost to rebuild the home
- Who lives in the home
- How much personal property do you have in the home
- Do you have a pool or trampoline
- Do you have a dog or other animal
The list goes on and on. There are over 150 different rating factors that contribute to your home insurance premium. The rate can even be affected down to the very street you live on. So, figuring out how to calculate homeowners insurance cost is not something that anyone can do off the top of their head.
As an independent insurance agency, we’ll have people come to us and ask “how much is homeowners insurance on a 150 000 house?”. When this happens, we immediately start asking more questions. Once we have a good idea of the individual risks facing this person we then enter the information into a cost estimator. The cost estimator will give us the amount of coverage needed to rebuild the home if it were completely destroyed.
From this point we would then discuss other coverage options such as liability limits, personal property coverage and loss of use. For a full breakdown of coverage on home insurance policies, visit this page.
Only after going through this whole process can someone figure out how to estimate home insurance cost. It seems like a lot, but with the help of an experienced insurance agent, it can be a very easy and simple process.
To start a home insurance quote now, click here.
How to buy home owners insurance?
With the internet, there are many different ways to buy home owners insurance. In fact, you can buy home insurance without ever speaking with anyone. However, unless you are an experienced agent, you may want to consult with someone first before you try to figure out how much does home insurance cost and buying a policy.
Many people think that speaking with an independent insurance agent is a waste of time that takes too long. This is not true. When working with an agent, they will do the work for you. An independent agent will do the work of checking multiple companies for you, so you don’t have to do the work and you don’t have to know how to buy home insurance. A 5 minute phone call with an insurance agent is as much time as it will take you.
When buying a new home, your mortgage loan officer will many times recommend a certain insurance or even get a quote for you. While it’s good that they are being proactive, we recommend working with an actual licensed homeowners insurance agent. This way insures that you get the best price on your home insurance and that you also get the proper coverage needed.
How to get home insurance
Home insurance can be purchased directly through an independent agent. Many people pay their home insurance premiums as part of their mortgage payment each month. Though this is a convenient thing, it can also be bad as it creates people that don’t know how much should homeowners insurance cost.
Your home insurance will renew every year automatically. The insurance company will send the bill to your mortgage company and your mortgage company will pay the bill. Your mortgage company will then charge your each month as part of your monthly mortgage payment.
If you are not paying attention, your home insurance premium will increase each year. After 5 years you will realize that you don’t know how much do you pay for home insurance and you’ll realize you’re probably paying too much!
It’s not a bad thing to have your mortgage company pay you home insurance premiums for you. What is a bad thing is not keep track of the cost each year when your policy renews. Make sure you are paying attention each year.
You not only need to look at the price you are paying, but you also need to reevaluate your coverage and make sure your life changes reflect the coverage you have and need. To reevaluate your home insurance needs, click here.
How much is homeowners insurance per year?
Homeowners insurance costs between $600 to $1,300 a year as we mentioned above. We also discussed having your mortgage company pay your home insurance premiums. Just like auto insurance, you will get a deal if you pay for your home insurance policy in full for the year.
If you don’t have a mortgage company, or if the mortgage company doesn’t pay your premiums, then you should consider paying in full for the year. Home insurance policies last for one year and then renew. Make arrangements with your insurance company to either bill you in full each year or to automatically deduct the annual expense from your account each year.
If you pay in full instead of worrying about how much is house insurance a month, you can sometimes saves 100’s of dollars a year.
As always, we recommend using an independent insurance agent to help you with your home insurance needs. They can help you find out how much is average home insurance for you specifically. They can quote you with 20+ companies and then you can decide which price and coverage level best work for you.