With the numerous options available, you may be wondering about the cost of homeowners insurance. This guide provides a breakdown of the average cost of homeowners insurance and what to expect when getting coverage.
What are homeowners insurance policies?
Home insurance is technically a type of property coverage. Policies offer financial compensation when perils damage your home and personal items. Policies may cover the structure of the home, structural attachments to the property, offer liability coverage or replace personal items.
For example, a storm with high winds may damage your front door. Your insurance company evaluates the damages. Then, they provide financial coverage to repair your door.
What factors affect the cost of homeowners insurance?
Homeowners insurance costs about $1500 per year. Many factors contribute to the price of a policy. These factors include:
- Size of property.
- Geographic location.
- Building materials.
- Age of property.
There are factors you can control that affect your overall policy cost, like your deductible amount. If you have a higher deductible, you pay more out of pocket if damages occur. However, your monthly premium will be lowered. If you have a lower deductible, you pay less when damages occur. A lower deductible usually means a higher monthly premium.
The average home insurance cost varies due to a number of factors. Researching and comparing policies can help you find the most affordable coverage.