When buy a new home one of the first questions that comes up is, how much is homeowners insurance going to cost?
If you’re trying to budget your living expenses it’s a good question. The short answer to that question is: It depends. They are many factors that can determine how much you’ll end up paying for homeowners insurance; here are a few to consider.
One factor that plays a part in how much you pay for homeowners insurance is the deductible. So it’s important to choose the deductible that’s right for you. You can either select a plan that has a low deductible or you can select a plan with a higher deductible. There are pros and cons to both. . If you go for a plan with a low deductible it will probably cost you more out of pocket up front, but you will pay a smaller amount if the time comes to make a claim. On the other hand, if you opt for a plan with a high deductible, the annual fee for your insurance coverage will probably be lower. So you will be required to put out more money before meeting the deductible if you have to make a claim for repairs to your home.
You will also need to determine the value of your home and property. Since your homeowner’s insurance premiums are also tied directly to how much coverage you receive. Naturally you will be paying more the more your house is worth. So you will want to get a good, solid assessment of what your home is worth to help you decide the right amount of coverage.
It’s important to note that the value of your personal belongings also has a lot to do with the value of your home. Homeowners insurance often covers personal property. If you have a substantial amount of personal belongings, make sure to get a policy that will cover the cost of your home and your belongings. Otherwise, even with insurance coverage you could still be at a loss, if disaster strikes.
One of the considerations that all insurers have to realize is your level of risk to the company. People who have had more claims are usually considered a higher risk, and therefore pay more up front. Homeowners who have had fewer claims typically pay less for insurance than those who have more claims. So keep in mind that the price you pay for homeowners coverage can be greatly affected by your past insurance history.
There are many risk factors as well that will have an effect on your homeowners insurance. For instance, the age of your home effects your rates. If you own a dog, depending on its breed can drive up your rates significantly. Also if you own a home with a swimming pool this can impact your rate.
As you can see, there’s a lot that goes into the calculation for determining the cost of your homeowners insurance policy. So it would be a good idea to talk to an agent as you determine which coverage’s are right for you. Home insurance tips