Are you considering getting home insurance?
While home insurance isn’t mandatory, it’s a useful tool. The coverage can replace or repair your home in case of certain damages. It can also help you recover from break-ins, legal disputes with neighbors, and more.
Over 70 million American homes have insurance. If you don’t have home insurance, now is your chance to buy it. Keep reading for a quick guide to help you learn more about home insurance cost averages.
Average Cost of Home Insurance
As of 2021, the average annual home insurance estimate is $1,824 for a home with $200,000 dwelling coverage. The nationwide average also includes a deductible worth $1,000. The cheapest home insurance costs can go as low as $234 per year in Hawaii.
The highest in the typical home insurance range is $7,922. If you live in Oklahoma, expect these expenses. Home insurance will differ depending on a few factors, which we’ll cover in-depth later.
Coverage of Homeowners Insurance
Now you know the typical home insurance cost, it’s time to learn how it protects you. Home insurance coverage also differs in many ways. Most have four standard coverage types, including:
- Personal property
- Loss of use
Dwelling coverage takes care of your home’s repair and replacement costs. Personal property pays for items in the home while liability covers legal expenses. Loss of use covers expenses like the temporary home rent.
For an insurance agent and firm with first-rate coverage, see Tate Teveldal State Farm.
Factors Affecting Your Home Insurance Costs
Your home insurance is unique thanks to few factors. When calculating its cost, a home insurance agency will consider the following:
- Age of the house
- Value of the home
- Materials used to build the house
- Location and hazards common to the location
- Special features of the home
- Your claims history
- Renovations or cost to rebuild
- The homeowner’s credit score
If you’re renting your home, some factors on the list also apply to home renter’s insurance.
How to Lower Home Insurance Rates
Not every homeowner can afford the right home insurance coverage. However, you can do a few things to improve your chances. Get quotes from various insurers to get a lower rate.
Another strategy is to raise the deductible or the amount you pay before the insurance kicks in. Property damage took up 98.1 percent of the claims made on insured homes in 2018. Consider securing your home from theft, disasters, and property damage.
If you have an excellent credit record, be consistent. Insurers will trust you if they know you can handle your money and credit well. Finally, ask for discounts from the insurer.
Ensure Your Home Today With a Home Warranty Insurance
We hope you learned a lot from our guide to the average home insurance cost. Nobody wants any hazard to happen to their home, but it pays to be ready. Home insurance is there to help you in case of property-related emergencies.
Are you looking for more helpful guides? Read our other posts and expand your knowledge now.