The cost of homeowners insurance

To determine your home insurance price, insurers typically look at the following:

  • Rebuilding cost of your home.
  • Age of your home.
  • Distance between your home and the nearest water source.
  • Fire protection rating of your city.
  • Your claims history and the claims history of others in your neighborhood.
  • Your coverages, limits and deductible.
  • Items meant for fun or recreation that pose major injury risk, such as pools or trampolines.

The average annual home insurance premium in the U.S. as of 2013 was $1,096 a year. But prices can skew much higher or lower depending on location. In Oregon, Utah and Wisconsin, the three most affordable states for home insurance, rates were between $568 and $665 a year. Meanwhile, in the three most expensive states, Florida, Texas and Louisiana, annual average rates were all over $1,800, according to the Insurance Information Institute. These rates will continue to rise based on the experience of each company and the claims they settle.  Your price can go up even if you did not have a claim.

Most insurance policies have an inflation guard so your coverage tries to keep up with inflation and your premium will also reflect this small increase.

If you’re concerned that your premium is too high, there are easy ways to save on homeowners insurance. For example, many insurers offer a discount for bundling your home and auto insurance. You might also get a lower rate if no one in your house smokes or if you have common safety features, such as burglar alarms and deadbolt locks.

Before getting too stressed over the cost of your policy, remember this coverage gives you considerable bang for your buck. After all, the premium you pay will be a fraction of the amount it would cost to rebuild your home from the ground up and replace all of your possessions.

Thank You for following us on this Blog.......Mike

Posted 2:00 PM

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