What is the average cost of homeowners insurance?

UPDATED: Oct 14, 2020

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UPDATED: Oct 14, 2020Fact Checked

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Me and my wife bought a vehicle in 2010. We got a loan from our bank and paid the owner. She moved and we lost contact before we could get the title. We paid off our loan and maintained insurance and registration on the vehicle. My wife recently totaled the vehicle in an accident that was the other drivers fault. That insurance company came and took the car and gave us a value that they would be paying us. A week later they called and said they couldn’t pay us. We can’t afford to take this loss and I have no idea what I can do.”

Asked October 27, 2015

1 Answer

There are many factors which influence the cost of homeowners insurance. Where the home is located is a primary concern, along with the materials used in construction of the home, its age, and the local topography. Similarly, insurance is licensed on a state by state basis, affecting the cost and insurance regulations on the basis of which side of a state line you live on. There are some average costs you can consider, but it is important to remember that your costs may not be comparable to the averages.

To get a rough estimate of the cost of home insurance, start with the value of the home and divide by 100. Multiple that number by 35 and you have the basic estimate. This number will be modified according to the other factors, such as age, materials, and location.

To provide you with some insight on how much costs can vary, consider that Connecticut has an average homeowners premium of $889, while Utah, which had one of the 5 largest rate increases last year, has an annual premium of about $498. You might think the rates between Florida and California have a lot in common because of similar climates and ocean exposure, but California has an average of only around $636, and Florida is one of the highest states at close to $1,200 a year.

Overall, home insurance rates declined steadily in 2015. If you faced an average rate of $867 in the early part of the year, your rate gaven up about $30 before the November statistics, dropping to nearly $867. New Hampshire has the largest decrease, at 11.8%, for an average premium of around $726. By contrast, Pennsylvania had the largest increase, at 1.9%, but is still comparable to New Hampshire with an average annual homeowners insurance rate of around $739.

Keep in mind that even your credit score and past insurance history will help to determine what your own rates will be. A high credit score translates into lower rates, but if you have a few insurance claims filed over the past 7 years they could have the opposite effect. Use average insurance costs as a general guideline to shoot for, but do not be surprised if your actual rates vary substantially.

Answered November 6, 2015 by Anonymous

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