About 66% of homes are underinsured by 22% to 60%. That leaves millions of homeowners scrambling to pay for damages and issues that their insurance policies don’t cover.
That’s a surprise to many homeowners. Insuring a home doesn’t have to come with surprises. You can get great coverage for a reasonable price.
How much does the average homeowners insurance cost? Read on to find out how much homeowners insurance costs and make sure you’re fully protected.
How Much Does the Average Homeowners Insurance Cost?
The average cost of homeowners insurance is just over $2,300 a year.
The numbers vary widely between states and types of policies. You’ll find the most expensive insurance policies in Islamorada Village of Islands, Florida. The average premiums there cost more than $6,200 a year.
What makes this area so expensive? Islamorada is comprised of six small islands that are part of the Florida Keys.
Hurricanes and floods are frequent occurrences. Residents have to pay the price of paradise to get adequate homeowners insurance to cover those events.
Homes in other high-risk areas that get wildfires, tornados, or crimes like theft and vandalism will have higher insurance premiums than in other areas.
Do you have fun things in the yard like a pool, trampoline, or treehouse? That’s a liability that insurance companies will have to pay for if someone decides they want to enter your yard and injure themselves.
The age of the home, your credit history, deductible, and claim history all factor into the equation, too.
You’ll find big differences between insurance carriers. Some offer cheap homeowners insurance, but it’s also hard to get a claim approved.
If you want to get cheap homeowners insurance and maintain a quality policy, look at ways to get discounts. You can lower the cost of homeowners insurance by qualifying for discounts.
There are discounts for having several insurance policies with the same carrier, having security systems installed, and more.
Insuring a Home With the Right Coverage
How can you make sure you get the right coverage for your home? Start by looking at the basics. Standard insurance policies are HO-3, which covers all risks.
While it’s said that HO-3 is an all risks policy, there are plenty of loopholes. For instance, your basement could flood because the sump pump stopped working.
If your insurance company doesn’t cover the sump pump, you’re out of luck. There are other exclusions that will be listed in your policy.
Don’t forget about the contents of your home, too. Many insurance companies will only cover the cash value of the items, not the replacement value.
If you have collectibles that are irreplaceable, then look for homeowners collection insurance. This insurance covers antiques, fine art, and other rare collectibles.
Getting the Best Homeowners Insurance Policy
How much does the average homeowners insurance cost? There are a lot of factors at work. Getting cheap homeowners insurance doesn’t mean you’re getting the best policy, either.
Follow the guidelines in this article, and you’ll have the right coverage at the right price.
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