How much is too much for homeowners insurance?

How much you pay for homeowners insurance will depend on many factors. Almost every home insurance policy will be different. There really isn’t one policy that will fit all lifestyles. In terms of paying too much for homeowners insurance, if you are to get more coverage than you actually need you would be paying too much for home insurance.

If we look at the national average for homeowners insurance in the United States it is roughly $1,393 annually. The average in California is about $1,280 per year. Please keep in mind if you have a home that is expensive to rebuild or live in an area where claims are high, you will be looking at higher rates. 

We want you to be prepared for what’s to come when you’re on your homeowners insurance journey, so we put together an article outlining what may affect your homeowners insurance rates and ways you can reduce your premium as well.

What does homeowners insurance cover?

Your standard homeowners insurance policy will cover a few major items. Home insurance will also protect you and your family from a list of covered perils such as theft, fire, smoke, wind, vandalism, and liability. Below are the common items a homeowners insurance policy will help to protect:

Dwelling:

Home insurance will provide dwelling coverage that should be equal to the cost of rebuilding your home. It will cover you for damages up to the policy limit. Dwelling coverage is in place to cover the structure of the home and any attached structures. 

Other structures:

A standard homeowners insurance policy will protect other structures on the insured properties land. This portion of your home insurance provides protection for damage to other structures such as a detached garage, fence or shed. 

Personal property:

Homeowners insurance will cover your personal property as well. Items such as clothing, furniture, & electronics are covered under the personal property coverage of your home insurance policy. 

Personal liability:

If someone is hurt or injured on your property the personal liability coverage within your homeowners insurance will protect you for liability damages against you. It will help to pay for medical expenses and damage to others property. Personal liability will also cover legal fees if you end up in a lawsuit. 

Medical payments:

If someone outside of your household is injured on your property, medical payments can help to cover the other parties medical expenses. This coverage will kick regardless of who is at fault. 

Loss of use:

If you are unable to live in your home the additional living expenses (ALE) portion of your home insurance will help to cover eating out, hotel stays, and lost rental income. 

What factors will affect my homeowners insurance premium?

There are many factors that may affect the cost of home insurance. We put together some of the more common things that may help the home insurance company determine the rate you end up paying:

The characteristics of your home:

Most homes will be different. Which in turn will require different levels of home insurance coverage. A home that may be more expensive to rebuild will also get higher home insurance premiums. Your homes characteristics will play a role in what homeowners insurance rate you pay. Below are a few of the items to keep in mind:

• The year your home was built
• The condition of the roof
• The quality of the construction
• Any special features of the home

Location of your home:

Where you live and the zip code your home is in will be a major factor in determining your homeowners insurance rate. Different parts of the country or the state you live in will come with different risks you will need to look out for. There are areas that come with more risk than others. Below are some geographical risks that may affect homeowners insurance rates:

• Weather in the area
• Fire risk in the area
• Crime levels in the area

Ways to lower your homeowners insurance premium 

In this article we went over what a standard home insurance policy will cover and what mat affect the rate you pay. Now we will get to the good stuff. How to save money on your homeowners insurance. Below are a few simple ways to reduce your home insurance premium:

• Bundle multiple insurance polices
• Have one of our agents shop around for you
• Have one of our agents search home insurance discounts in your area
• Adjust your home insurance deductible
• Install safety features
• Only get the home coverage you need
• Work with an independent agent like the ones at Eugene C Yates Insurance Agency

Sacramento homeowners insurance quote

If you have additional questions regarding homeowners insurance or would like a custom home insurance quote, please contact us today at 916 313 6100