Average Cost of Homeowners Insurance

The average cost of homeowners insurance depends upon a large number of shifting variables. You can find homeowners insurance estimators that will give you an average cost of homeowners insurance in your zip code based upon the size of your home. This is a great tool for getting an idea of how much your homeowners insurance rates will be. However, there are other variables that will affect this cost.


 Location, Location, Location

The importance of where you home is located cannot be overstated when it comes to determining how much you have to pay for homeowners insurance. The average cost of homeowners insurance in your area will depend upon the perils that are specific to that area. If you live in a flood plain, you will need additional flood insurance that will increase your premiums. If you live in an area prone to earthquakes, you may have to beef up your insurance policy for better earthquake protection.

The cost of labor and materials in your area will also play a role in the average cost of homeowners insurance in your area. A homeowners insurance calculator can help you understand how much insurance you need based upon the location of your home.


Construction of Your Home

The type of home you have will affect what you can expect to spend on homeowners insurance. Expensive building materials mean a bit more insurance and higher premiums for the most part. If you live in an area that is exposed to frequent high winds, sturdy building materials may actually save you money on your premiums with some insurance providers. Mobile homes are more expensive to insure, in general, than stick-built homes because they are not as secure or safe from the elements.  


Homeowners Insurance Companies

Homeowners insurance rates are not regulated, which leads to variations from company to company in premiums. By shopping around you can quickly get a feel for which insurance company is willing to offer you the cheapest possible rates. In most cases, there is not one company that is always cheaper than the others. One company may be cheaper if you are insuring a mobile home, while another may be cheaper if you need extra liability insurance because of a swimming pool. This is the reason you should shop around to get an accurate account of the average cost of homeowners insurance for your specific circumstances.


Review Your Policy to Lower Costs

As your goal is to come in under the average cost of homeowners insurance and save as much money as possible, a yearly review can be a good financial idea. Each year you should take the time to evaluate your policy. When doing this, consider the following.


  • Additions to home (new room, deck, garage, etc.)
  • Increased liability (pool, trampoline, dog)
  • Market fluctuation of home value
  • Personal possessions added to inventory
  • Rates of other homeowners insurance companies


Any of the above changes can have profound effects on your premiums and the amount of coverage you need. This means a comparison of rate quotes is also in order during your yearly review. Things change from year to year, and your homeowners insurance company may no longer be the provider that can save you the most money while also protecting your home.


Shopping to Lower Costs

Using the average cost of homeowners insurance as your baseline, you can find ways to save. The best thing you can do is shop around. Online rate quotes allow you to get many different quotes from reputable homeowners insurance companies in your area. From these quotes you can compare rates and policies to find the best deal out there. Finding the average cost of homeowners insurance in your area for your home can get you on the way to savings. Shopping around for homeowners insurance using online rate quotes can seal the deal and help you maximize your coverage and your savings.

Homeowners Insurance Rates

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