What is the Average Cost of Home Insurance?
Home insurance is an important aspect of owning a house. There are many types of home insurance and the prices vary depending upon the value of the home. In certain regions, the cost of home insurance is higher than in others. Factors such as natural disasters in certain areas make a difference in terms of pricing for home insurance.
Location
The average cost of homeowner’s insurance can vary according to the location and value of the home. This type of insurance covers the house itself, the homeowner’s property and the liability if anyone were to get injured on the property. Certain locations are more expensive than others across the country. It is likened to the cost of real estate. Houses cost more in some areas than in others. If the home value is covered under the home insurance policy, the price for that coverage goes up.
Coverage
The amount of coverage required is also a determining factor in the cost of the insurance. If a person requires $500,000 worth of coverage, the cost would be lower than if someone requires $1,000,000 worth of coverage. Therefore, the cost would be dependent upon the amount of coverage needed. The personal property coverage will also increase the cost if there is property of high value such as original art pieces and such. An average homeowner with a property value of $150,000 can expect to pay about $1,200 per year in insurance premiums.
The cost of replacing the home if it were to be destroyed is a factor in determining the cost of the insurance premium. The amount of home insurance claims that are submitted in a particular area play a role in the cost of insurance. Areas with propensity for natural disasters to occur such as hurricanes, floods and tornados are in a higher risk zone than those areas that do not have frequent natural disasters that occur.
Miscellaneous
Other oddities affect the average cost of home insurance, which can include how far the home is away from a fire hydrant and how much the deductible of the insurance is. If a home is close to a fire hydrant, the home is considered less risky. A policy with a higher deductible will cost less than a policy with a low deductible. These factors can mean the difference of a few hundred dollars a year. The average cost of home insurance is dependent upon many variables and calculated based on the risk. According to Insure.com the average annual cost of homeowner’s insurance in the US countrywide was $804.