Average home insurance costs vary greatly. Many people pay too much for their insurance coverage, and they don’t even know it! Analysis has found the average home insurance cost varies significantly, based upon where you live. Some states may see average home insurance premiums fall below $1,000, in some cases, such as in Hawaii, Maryland and Vermont.
Other states may see average home insurance rates rise above $3,500, on occasion, such as in Massachusetts, New Jersey and Illinois. Those living in Alaska, California, Connecticut, Hawaii, Maryland, Massachusetts, New Jersey, New Mexico, Oregon, and Washington are more likely to pay more for their coverage. Why is this? Some people blame the increases on the cost of living in certain cities, such as New York, Los Angeles and San Francisco. However, other factors come into play as well. If you live in a rural area, you may be paying less for your auto and homeowner insurance than you would if you lived in an urban area.
Many people are surprised to learn that their house may be a victim of theft. The average home insurance cost in these areas is much higher than the national average. There are many reasons for this, such as the crime rate in these areas is much higher. However, when you take a closer look, you may find that your house could actually be one of the few exceptions to the average homeowner’s insurance cost.
One thing to note about your house is that it isn’t likely to be a target for a robbery. As a matter of fact, the crime rate in your area may be lower than the national average. This is due to a number of different factors. If your neighborhood has seen a large amount of residential improvement work done over the last several years, this can affect your chances of having to pay high premiums.
Another factor that influences the cost of homeowner coverage is the extent of the damage to your property. If you live in an area that doesn’t see a lot of damage caused by storms and heavy snow, your average home insurance cost will be lower. While there is some variation between companies based on the severity of the damage, there is usually a basic minimum amount that is required in order to be considered a good value for your policy. This minimal coverage level is usually around $1 million dollars in damage.
If your property is damaged or destroyed in severe weather, your policy will also be more expensive. The national average is typically around two or three times the actual cost of damage incurred. If your home is damaged by fire, a tornado, hurricane, or flood, it could be substantially more expensive to replace or repair your home. The national average on this type of coverage is around six or seven times the actual cost of damage incurred. If your home is severely damaged by severe weather, you can expect your average annual policy to be between ten and fifteen times the actual cost of damage incurred.
Other factors that could increase your homeowners insurance cost are the type of dwelling you have and the neighborhood in which you live. Those with multiple dwelling units will generally pay more to protect their homes. Those who live in an older neighborhood or one that is located in a rural area may find that their premiums are much higher than those who live in a city or urban area. If your home is located in a rural area, the biggest factors that influence the cost of protection will be the local property tax rate and the fire department’s call load.
There are many factors that will influence your homeowners insurance coverage costs, and the information provided here will not provide all of them. Before purchasing coverage, it is important to understand how your insurance company determines your premium and what these factors might be using real estate appraisals, demographic data, and similar tools. It is also important to understand what type of coverage you require and why these features are included in the policy. Many companies only offer certain types of coverage, so it is important to ask your broker about all the options available to you before purchasing coverage. By shopping around, you can often find a good deal on a decent policy that contains the features you need at a price you can afford.