How Much Does Homeowners Insurance Cost?
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.
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.