What is the cost of average home owners insurance?

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Asked October 14, 2011

1 Answer

The cost of homeowners insurance is dependent on a number of factors, such as where the home is located, your credit history, and the value and condition of the home. For example, the average cost of home insurance in the state of Washington is $557 a month, while the average cost of the same coverage in Florida is $1064.

It is also important to note that home insurance has been steadily increasing. The national average in December of 2010 was $674.23, but it had increased to $730.28. The state with the largest increase was Wyoming, which went up 9.6%, for an average annual cost of $810. To be fair, however, some places have decreased, such as Mississippi, which has decreased 8.6%, to $962 annually.

Your own credit score will have an impact, as well. A high credit score is considered an indication that you are a more stable, responsible person to insure, and will save you money on all types of insurance while a low credit score means paying higher premiums. The amount of the increase or decrease depends on your actual credit score and varies from one insurance company to another, so shop around to find the best prices for you.

Another factor that may affect your home insurance rates is whether or not you are required to carry PMI, or Private Mortgage Insurance. This type of insurance could amount to several hundred dollars per year, but is not required for all mortgages. If you need to have it, your lending institution will inform you of the fact and in many cases the cost of the PMI is rolled into the monthly mortgage cost automatically.

Answered October 14, 2011 by Anonymous

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