I remember years ago, when I was shopping for my first house, and talking with the real estate agent, that he asked me if I’d already arranged homeowners insurance for my new home, to which I responded: “How Much is Homeowners Insurance?” He laughed, and then we both had a chuckle. Homeowners insurance wasn’t something I knew about, and already stressed over the thought of paying a thousand dollars per month on a house, the idea of paying more on top of it was a nightmare.
Years later, I’m a bit wiser, less stressed, and happy with the purchase I made, but that doesn’t mean it wasn’t a learning experience. For starters, lacking knowledge on how much is homeowner’s insurance meant I had to spend hours making phone calls and talking with insurance agents. In those days, we didn’t have the Internet, and the process was much more painful. Luckily, times have changed and we an face that question with a search box in order to get a lightning fast answer. I also remember being confused on the different quotes I received, and why some companies were much cheaper than others.
What does the cost of homeowners insurance depend on?
To break it down, and if you yourself are wondering about how much life insurance is, I’d like to share some of the things that will make your decision easier. First, homeowners insurance rates are based primarily on the value and location of your home. The greater the worth of the house, the more expensive the premiums will be. Also, if your home is older, then it is possible that could negatively affect the premiums too. Next, the amount of coverage you get for your contents has a huge impact on the cost of insurance. If you have a lot of expensive technology, furniture, or other household items, then you can expect to pay more than someone with just a few possessions.
How much is homeowner’s insurance depends on where you buy it as well. If you buy insurance from a budget company, then you might save a little bit in the short term, though I advise against doing that. Granted, a low premium does not necessarily mean that your coverage is bad, but it could be a leading indicator.
I’m much less worried about how much is homeowner’s insurance than I am in making sure that repairs are done right, and that my goods are covered, regardless of what happens to them. Many budget companies take shortcuts that homeowners don’t understand until it is too late.
So how much is homeowner’s insurance? The answer is that it depends, and varies based on the conditions listed above. You can expect to pay at least $80 per $100,000 per month, give or take a bit. Sadly, there isn’t much you can do to reduce the cost, and homeowners insurance is a necessary part of buying a home. It’s important that you take this into account when shopping for a home, otherwise you might put an offer on a house you cannot afford. The reality is that you won’t know how much of a house you can afford until you know how much is homeowner’s insurance, so I recommend that you check early and check often.
What about homeowner’s insurance estimates?
The first thing that anyone must do before closing on a new home is to get a homeowners insurance estimate. For those that do not know, homeowner’s insurance is like car insurance, only it covers the structure of your home and all of the contents inside. A homeowners insurance estimate will give you a great idea of how much your annual premium will be, which will give you an idea of how much you’ll add to your mortgage payment every month.
Whenever you buy a home, your loan company will require an early homeowner’s insurance estimate so that the title attorney can prepare the documents, but they will also require that you purchase it prior to closing so that they can be sure the house is covered. Why do they require coverage? It’s quite simple really, they want to be sure that the house is there should you stop paying, and that it is protected from flood, fire, and storm, among other potential damages.
How is a homeowners insurance estimate calculated?
Most homeowner’s insurance estimate sheets will break down your premium by two things: the value of your house and the value of the contents inside. You can choose how much coverage you want to buy, and obviously the less you buy the cheaper your rates will be. On average, most homeowner’s insurance premiums start at around $80-$100 per month, and gradually increase from there. That being said, if you live in an area close to hurricanes, earthquakes, sinkholes, or floods you might find that your loan provider will also require coverage for these potential hazards. In this case, your homeowners insurance estimate will probably be higher than the national average, simply because insuring against those types of natural disasters is expensive.
Where to start looking for your homeowner’s insurance?
If you need a homeowners insurance estimate but aren’t sure where to start, then you can do a few things. The first option is to call the company that provides your car insurance and ask them if they offer homeowners insurance. If they do not, then you can ask your real estate agent for recommendations. If you don’t have an agent or they don’t have a list of recommendations, then your last step is to call a national agency, such as State Farm, Nationwide, USAA, Allstate, or any other company that you find on TV. Of course, you can always pull out the Yellow Pages too.
Why is important to compare home insurance quotes?
A homeowners insurance estimate might not be the best part about buying a house, but it is an important step in doing so. It is nice to know that you are protected against theft, natural disaster, and anything else that can happen. You’ve spent all that money on TV’s, furniture, computers, electronics, and jewelry, and it’s nice to know that you are protected in case something happens to it. So, if you are buying a home, or thinking of buying a home, then you might as well get the homeowners insurance estimate over and done with, that way you can move on to the good stuff!
