Archive for March, 2013

Protect Your Home From Damage and Loss

Low cost home owner insurance

Homes are the biggest investments that most people will every make; and thus, they must be insured. The cost of home insurances varies, so homeowners who are seeking the most affordable, low cost home insurance have an overwhelming task ahead of them. The average cost of home owners insurance falls between three hundred and one thousand dollars per year. Yes, that is a wide average home insurance cost; however, saying that the average cost is six hundred fifty dollars per year might be misleading. Therefore, it is safer to provide an average range than a single average for yearly home insurance costs. For those homeowners who are on the hunt for low cost home insurance, there are many complex variables to consider when comparing insurance companies.

The competition that has been bred by the internet is such that many companies and services are forced to offer better deals and lower prices to attract customers. Of course, depending on the industry, the types and amounts of deals, such sales, rebates, and refunds, that can be offered to customers varies. Evidently, there is quite a bit of flexibility within the insurance industry. One must keep in mind, however, that insurance companies that offer low cost home insurance to customers, are often better suited to different customers and different types of homes than others. Homeowners who have secured low cost home insurance in the past, know that there are innumerable factors insurance companies use to determine the amount of a home insurance premium. Factors such as age and composition of the home, type of heating system and age of furnace or boiler, number and age of children, number of floors, and location of the home, among others, will influence how much a home owner must pay annually.

In addition to the number of factors listed above, the amount of low cost insurance is often determined by the amount and quality of coverage that a homeowner wants. Obviously, in order for companies to provide low cost home insurance, it must find ways to cut corners. Many times saving money is made possible by requiring home owners to pay higher deductibles in the event a claim occurs, and, of course, less coverage from damages by force of nature. Regardless of the complexity involved, if a homeowner commits enough time to researching low cost home insurance, it is out there, and the savings can make a considerable difference.

How Much Does Homeowners Insurance Cost?

Average cost of home owners insurance

Many homeowners know that they should carry some from of homeowners insurance, but may shy away from purchasing a policy because they are unsure of what home insurance costs. A home insurance policy may be required to be in place before a mortgage can be finalized. With that in mind, you should research the cost of home insurance and invest in a policy. There are many factors that an insurer will look at to decide the cost of home insurance policies.

1. Type of Policy

One factor that can effect the cost of home insurance is what incidents are covered by the policy. Basic policies may cover things like fire, vandalism and wind damages. Additional costs may be assessed for families who pick up additional coverage for things that are not covered under basic policies, like floods.

2. Location

Where your house was built will have a direct effect on the average cost of home owners insurance. Homes that were built in high risk areas for certain types of disasters need to purchase additional coverage for those events. For example, homes built in California are likely to sustain damage in an earthquake so additional earthquake coverage becomes necessary.

3. Home Features

Some features of a home can serve to lower the cost of home insurance. Security systems and hardwired smoke detectors are just two example of safety features in a home that and insurance company may give you a discount for simply for having them installed.

According data, the average home insurance cost is between 300 and 1,000 dollars. This amount may be paid out in installments across the year or be required to be paid once annually, depending on the company. A basic rule of thumb for figuring out what the cost of home insurance may be to you is to divide the value of your home by 1,000 and multiplying that resulting number by 3.5. That will give you an approximate amount for the home owners insurance cost of a basic home owners policy.