ENTER YOUR ZIP CODE
to get insurance quotes in your area
Wrong zip code

Aspects of The Cost of Home Insurance

Figuring Out The Cost Of Home Insurance

When you make a home somewhere you are not only making an investment but purchasing a place that will provide memories for years to come. Protecting those memories and the people making them are what home insurance is all about. The cost homeowners have when some damaging incidents happen can get large quickly, so knowing what factors are looked at when determining how much your cost of home Insurance will be.

California Car Insurance
Rates by ZIP Code & City
Enter ZIP for average rate. Then enter Age, Gender
and Coverage Level for customized rate.
Wrong zip code

Most & Least Expensive ZIP Codes in California
Highest Rate:
Lowest Rate:

The Basics of Homeowners Insurance

As always, there are a number of factors and variables that are used to determine the cost of a homeowners insurance policy. Variables include:

  • Where you live
  • What your deductible is
  • The amount of coverage you need

A good first step is to determine what you want your coverage amounts to be. There are three main categories to think about. The three main categories are:

  • Your dwelling
  • Your deductible
  • Your liability coverage

The limits of some coverage are often a set percentage of your dwelling coverage limit. Here are some possible examples:

  • - Non-dwelling coverage: 10%
  • - Personal property: 50%, either actual cash value or replacement value
  • - Loss of use: 20%

How Much Do You Need

Dwelling Coverage

It is often recommended to get enough coverage to match the full replacement cost of your home. The amount of money it would cost to completely rebuild your home is called the replacement cost. While you can figure out this cost on your own, the easiest and most accurate way is to have an appraiser do it. The cost of home insurance is well worth it when you factor just these number in.

Liability Coverage

When it comes to protection for your entire household, liability insurance is an important piece. It covers the costs when expenses arise from injuries of others or property damage occurs by a member of your family. To expand, it covers the medical costs of people who are injured in your home or on your property. It also helps when damage is caused to a neighbors property. In addition, if there are legal fees from being sued or judgments from being sued, your liability coverage will help cover the costs (up to your policy limits, that is).

Many home insurance policies come with amounts around $100,000 when it comes to liability insurance. The costs associated with defending a lawsuit or paying or medical bills for a serious injury can go much higher. It is often recommended that liability insurance is closer to $300,000. If an accident happens, the cost of home insurance can really pay off, as well as provide peace of mind.

Your Deductible

When you file a claim, your deductible is the share of your repair costs when you file a claim. The lower your deductible, the higher your homeowner's insurance premium will be. Finding the right balance between your deductible and insurance premium can be easy. We have dedicated professionals that can walk you through the difference and why people choose each. If you choose a higher deductible it will save you money, but it will also reduce your home insurance claims. Having the information you need to make the choices and to know what the trade-offs are is important. We are happy to help.

Why Homeowners Insurance Rates Vary

There are many reasons that insurance rates can vary a lot, sometimes even from one neighborhood to the next. Insurance companies use a number of variables to determine rates. These variables include:

The Homes Location

Where your house is located gives information about crime rates in the area, the possible damage that could come from nature, and it's exposure to other hazards.

The Homes Value

Your home's value helps determine the costs of repairs to damage, in addition to the amount it would costs to rebuild your home if it were completely destroyed. This includes information like construction costs, costs for building materials, and costs to adhere to local regulations. Your home's age also impacts not only it's value, but how likely claims might be made.

Risk Exposure

Aggressive breeds of pets, swimming pools, trampolines, and other risks can increase the cost of your homeowner's insurance.

Your Insurance Score

This can partially be related to your credit score, except in Maryland and Hawaii.

What Your Rates Cover

For example, in Hawaii, hurricane damage is not covered by this policy.  It is covered by a separate hurricane damage policy. This eliminates a lot of the risk regarding homes in the state and lowers insurance premiums for homeowners insurance drastically. There are other variables when it comes to costs that are out there, but it is always a good idea to read up on what your policy covers so you have the right types of protection for your area. We are happy to help you determine what (and which) policies you need.

Final Notes

Whether you are looking for your first home and just getting started with homeowners insurance or are looking for a better policy, General Insurance is here for you. Rules and regulations change and new variables are sometimes added in. It is comforting to know you have an insurance company that is there for you, and we are proud to be that company for such a large number of satisfied and happy customers.

See also:

When you hear the term cars with free insurance, you may be led to...
When you need the combination of auto homeowners insurance, you need...
Renters Insurance For Peace Of Mind If you rent your home from...

Add new comment

CAPTCHA
This question is for testing whether or not you are a human visitor and to prevent automated spam submissions.