Several factors can help you save money on your home insurance. These are average costs on the HO-3 type of home insurance, which is home insurance based on an ‘all risk on building’ but ‘named perils on contents policy form’. As per the Insurance Information Institute, $1,192 was the national average cost of home insurance. This figure varies based on different factors.
Factors that Impact the Average Cost of Home Insurance
– personal insurance score
– location (what the risks and claims experience in your neighborhood are)
– your chosen coverage options (All risk versus Named perils, or Replacement Cost versus Actual Cash Value coverage)
– deductible (how much insurance risk you take compared to the insurance company)
– discounts you can get
State-Wise Average Home Insurance Cost
The average home insurance cost differs from one state to another. The five states where the average cost of home insurance is the most expensive are Louisiana ($1,967), Texas ($1,937), Florida ($1,918), Oklahoma ($1,875), and Kansas ($1,548). The five states where this figure is the least expensive are Oregon ($659), Utah ($664), Idaho ($703), Nevada ($742), and Wisconsin ($762).
The Real Value of Your Home Affects the Cost of Insurance
If you reside in a neighborhood where the reconstruction cost or dwelling value of the homes is higher than the average, then you’ll end up paying much more than what the state average is. If you’re unsure of your home’s value, you could ask your insurance company to conduct a home inspection.
Home insurance may be priced higher or lower in your area based on:
– homes that are newly constructed or well-maintained
– lower levels of crime in the area
– updated infrastructure (sewer lines, water service pipes, and the like) that can help avoid water claims
– less severe weather conditions, such as snowstorms, flooding, hurricanes, and the like
The average age of the homes in your area also affects the cost of home insurance. If all the homes in your area are older than average, then your insurance may be higher due to higher claims. A home built in 2015 is less likely to have a leaky roof or other such problems than a house built in the 1960s that hasn’t had any renovations.
Talk to multiple insurance companies in your area to understand what kind of prices you can expect.