Home Insurance How Much Is Home Insurance? What You Need to Know

How Much Is Home Insurance? What You Need to Know

by Krutika Lohakare
How Much Is Home Insurance? What You Need to Know

Whether you mortgage your home or rent it, chances are, you need to have insurance on it. Unless, of course, you want to pay out of pocket after a fire consumes your home and your belongings, to the tune of almost twelve thousand dollars on average. Compared to that, the price of home insurance seems negligible, does it not?

So, how much is home insurance? This seemingly simple question can depend on the type of policy you choose and a variety of other factors. Here’s what you need to know.

Home Insurance Costs Depend on Policy Type

How much is home insurance? The answer most often depends on your policy type. There are eight main types of homeowners’ insurance policies, including:

  • HO-1: Also known as Basic, covers only your dwelling
  • HO-2: Sometimes known as Broad, covers dwelling and belongings
  • HO-3: Known as Special coverage, covers your dwelling, belongings, and liability
  • HO-4: Your basic Renter’s Insurance policy, covers liability and your belongings
  • HO-5: Comprehensive insurance, which covers the dwelling, your belongings, and your liability from more risks than an HO-3
  • HO-6: A policy intended for Condo or Co-Op owners
  • HO-7: The insurance policy made for mobile homes
  • HO-8: The insurance policy made for historic or older homes

Generally, the more coverages you have on your policy, the more you can expect to pay for your monthly premiums.

The Price of Home Insurance Varies By Provider

Home insurance prices can vary by the insurance provider. Larger companies have more clients from whom they collect premiums and might be able to charge less for more coverage. However, you also pay for their branding and marketing, where an independent insurance agency can offer lower premium costs since their overhead is lower.

Home Insurance Costs Can Depend on Your Location

How much is home insurance for your location? Well, it depends first and foremost on your state. Certain states tend to have higher premiums than others. However, it also depends on your location.

Do you live in a high-crime area, or somewhere at high risk for floods or fires? If so, you can expect the increased risk to reflect in your insurance premiums.

Attractive Nuisances Can Increase Premiums

Does your house have a pool? A treehouse or trampoline for your kids? If so, then you have what many insurers term “attractive nuisances” in your yard, which can draw troublemakers. This, in turn, will increase your home insurance premiums.

How Much Is Home Insurance? Let’s Review

You may be wondering, “How much is home insurance for me?” The answer to that question depends on your location, the type of policy you have, the insurer you use, and whether or not you have any attractive nuisances in your yard.

However, no matter what factors play into your home insurance costs, you should always shop around for the best bargain. If you have any questions on how to get the best deals on your homeowners’ or any other insurance policy, then check out our blog for more helpful articles like this one!

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