Cost And Advantages Of Homeowner’s Insurance

We assume that you are here because you are probably thinking about investing in homeowner’s insurance. Your home is likely one of the most important assets in your life, whether you are buying a house or paying the mortgage, you might be wondering about homeowners insurance cost. Unfortunately, there are situations when our home may suffer damages, some of which can range from natural causes, like rain and snowstorms; or intentionally caused by a reckless individual. The aftermath of these incidents can be very costly if you do not have homeowner’s insurance, making you regret not having one after they occur. That is why we are here to help you by explaining the advantages of acquiring homeowner’s insurance, as well as detailing its usual price range.

What is homeowner’s insurance?

Homeowner’s insurance is a form of property insurance that covers losses and damages to an individual’s residence, along with furnishing and other assets within the home. It provides liability coverage against accidents in the home or on the property as well.

What does homeowner’s insurance cover?

This insurance usually covers interior and exterior damage, loss or damage of personal assets, and injuries occurred while being on the property.

  • Dwelling protection: It is defined as the coverage to the structures of your home, like the roof, walls, and foundation of the house. Dwelling protection can also help cover other structures that are attached to your home, such as garages or decks against certain risks.
  • Personal property protection: Homeowner’s insurance may also cover the loss and damage of your personal belongings located inside your home. In case your furniture is damaged from a fire or is stolen, this insurance may help you to repair or replace your Usually, there is an extended coverage for other belongings, such as jewelry, watches, or even clothes.
  • Liability protection: Homeowner’s insurance provides coverage in instances when people who do not live with you, sustain injuries while on your property. An example of this can be portrayed as a visitor who trips and falls on your porch, or is attacked by one of your pets. Bodily injury liability coverage can help you pay for your resulting legal expenses, or the visitor’s medical bills if you are found at fault.
  • Additional living expenses coverage: In case you suffer total loss of your home, and it thus cannot be habitable any longer, this insurance may help you pay temporary living costs such as hotel bills.

How much does homeowner’s insurance cost?

A homeowner’s insurance rate may vary by different circumstances. It can differ due to state laws, location, and condition of your home, personal information like your credit score, marital status, and other policies such as discounts or deductibles. As we mentioned before, the state that you live in is an important factor to calculate the cost of homeowner’s insurance. This rate is usually higher in states that are prone to suffer natural disasters such as hurricanes and tornadoes.

In 2017, according to the National Association of Insurance Commissioners, the average cost for homeowner’s insurance was $1,211. Studies have revealed that Oklahoma had the highest homeowner’s insurance rate in 2020 with $4,445, followed by Kansas with an average cost of  $3,931, concluding with Florida totaling $3,643.

Insurance companies review different factors to calculate the cost of their service. Some of these variables are beyond your control. For example, during natural disasters,  you do have some influence over how much you pay for your home insurance. You can do it by choosing a higher deductible while making sure you receive all the possible discounts.

We understand that homeowner’s insurance cost can be difficult to calculate and that choosing the right homeowner’s insurance company can be complex as well. However, with the information provided to you, we trust that you will be more meticulous when choosing a reputable company that will protect your assets. Furthermore, it is important to have your home secure, so contact your homeowner’s insurance right now!