How Much Is Homeowners Insurance
If you’re new to buying homeowners insurance, you may be wondering, How much is homeowners insurance? Well, the truth is that it depends largely on what type of insurance policy you have and what company you insure with, among other things. The best way to figure out how much you’ll pay for homeowners insurance is to get quotes from several insurance companies, which you can do online or over the phone. However, if you’re curious as to what factors will influence your homeowners insurance costs, read on.
Cost of Your Home
Your homeowners insurance policy will cover the cost it would take you to rebuild your home if you lost it in a fire or storm. This means that the more expensive your home is, the more you’ll pay for homeowners insurance. So, if you’re thinking about buying a home, you should definitely keep this in mind as you think about what price range to look at.
Some areas are more prone to natural disasters like major storms, and areas like these will have higher homeowners insurance premiums because the insurance companies are taking a bigger risk on homes in these areas. Other things like crime rate and nearness of a fire station and a fire hydrant will play into your homeowners insurance costs. To get the best costs, choose a location with a low crime rate that is also close to a local fire station.
Type of Policy
There are many types of homeowners insurance policies, and they’re all associated with different costs. Basically, the more events against which your homeowners insurance policy protects you, the more you’ll pay for insurance. This is because a policy that only protects against fire is less likely to draw claims than a policy that also protects against storm damage and burglary. Also, if you have any riders on your policy which are additional mini-insurance policies for valuables like collectibles and such your insurance costs will rise.
Like car insurance, your homeowners insurance will be based in part on your background, age, and credit. Basically, to an insurance company, you’re little more than a statistic. This means that an insurance company is going to look at your gender and age and occupation and asses what sort of risk you’ll bring to them. The higher the risk, the more they’ll charge for insurance.
Luckily, some insurance companies are more suited to protect higher-risk clients than others, and all insurance companies assess risk on a slightly different basis. For instance, one company may charge you a lot more if you’re single, but another company may not see a huge difference between single people and married people.