Whether you’re searching for a new home or already own one, knowing the average rates of homeowners insurance is essential. It will enable you to anticipate what your expense is and create a budget while you’re comparing homeowners insurance quotes.
When you have an idea of what you’ll pay, it will help you save money when you’re quote shopping since you’ll know if an insurer is quoting you a higher amount that what’s average in your area. However, there are several factors that go into how much you will pay for your homeowners insurance. These include:
Your Home’s Location
Although there are several factors that will determine the rate you pay, your home’s location is the most common factor. If you live in a state that’s prone to tornados, hurricanes, earthquakes or hail storms, you can probably expect to pay a higher rate for your policy than those who don’t. Obviously, areas that have less frequent sinkholes and hurricanes will pay less.
The Cost of Rebuilding per Square Foot
Since you typically have to file a claim with your homeowners insurance to rebuild any part of your home due to a fire or other disaster, your insurer will likely factor in the price per square foot to rebuild any structure of your home based on current construction rates. The overall cost of your policy could differ from others, despite the national average per square foot.
Your Age, Credit Score and Other Information
Everything from your age, credit score, level of education, frequency of claims and marital status can impact your rate, whether it’s higher or lower. For instance, if you have a high credit score and no history of claims, you’re likely to pay a cheaper rate.
Your Home’s Safety Features
Different safety features in a home can reduce your rate. For instance, if you have a security system, storm shutters or carbon monoxide detectors in your home, your insurance company may give you a break. If you don’t, you may want to consider upgrading your home with these features.
There are many factors that insurers review while they calculate your home insurance rate. While some things are beyond your control, there are some ways where you can influence the rate, like adding in safety features, getting your credit score up, or moving to a place that’s not at risk for a tornado to funnel down and wipe your home away.
You can even save some money by choosing a higher deductible and make sure you ask about and take advantage of all discounts. So, how much should home insurance cost? A lot depends on you, and includes using an independent insurance agency who can obtain multiple homeowners insurance quotes from providers for you.