What’s The Average Cost Of Homeowners Insurance Policy?
On average, what does home insurance cost? It’s hard to really narrow down an average cost of homeowners insurance, because there are so many variables. If you live in an area that’s prone to earthquakes or floods, you’ll pay more for home insurance than if you lived in a more stable area. Also, average cost of homeowners insurance is going to vary depending on the type of home you have, and where you live.
A good rule of thumb is to assume that you’ll pay about $35 per $100,000 of your home’s value, but don’t get angry with your home insurance provider if your quote ends up being higher – as we just said; it has to do with the variables. If you really need an estimate before you shop, take the value of your home, divide it by 1,000, and then multiply that result by $3.50. This won’t be bang on, but it should be reasonably close.
What Type Of Policy?
One thing that determines the average cost of homeowners insurance is the type of homeowners insurance policy. Not all homeowners insurance policies cover all circumstances. For example, you might be covered for typical disasters like high winds, fire and vandalism, but not for earthquakes or volcanic eruptions.
Where Do You Live?
Where your home is located can directly affect the types of damage that your homeowners insurance policy will cover. If you’re in a high-risk area, you can expect to pay considerably more than if you lived in a less vulnerable location. A good example of this is California – everyone knows that certain parts of the state are just waiting for “the big one” – the earthquake that is going to cause horrendous damage. People who live in these areas are, of course, going to end up paying higher home insurance premiums than people who live in “safer” areas.
Can Your Costs Be Reduced?
Sometimes they can. There are a number of things that you can do that might lower your home insurance premiums. What it amounts to is taking whatever measures you can to offset the risk. For instance, if you live in an area that is prone to hurricanes, you could install storm shutters. If you live in an area that’s prone to robberies and break-ins, you could install deadbolts or alarm systems. In any area, installing smoke alarms will reduce your home insurance premiums.
Essentially, whatever you can do to offset the possibility of disaster will work in your favor when it comes to determining your average cost of homeowners insurance.
Is there an average cost of homeowners insurance? Well, sort of. It depends on a lot of different factors. But there are things you can do to put your cost close to, or even below, the average.