How much should home insurance cost

The cost of homeowners insurance rates can vary. There are a lot of factors that influence the price of your home insurance premiums.

A study done in 2020 shows that the average cost of homeowners insurance is roughly $1,500 annually. This is based off a dwelling coverage amount of $250,000. 

From state to state home insurance rates will vary. The same can be said about home insurance company to home insurance company. As most home insurance companies will make different valuations depending on the amount of risk. 

What affects the cost of home insurance premiums

The home insurance company is going to want to review the risk of your home. They will also review you as well and determine the risk you carry. If you have a history of filing claims you might be looked at as a riskier client than they may want. 

Other factors that could effect the price of your home insurance premiums can be the location of the home. If the crime rate is higher than other surrounding cities you may encounter higher rates. The size of your home and whether or not you have a pool can also add to the cost of the insurance premium. 

We want you to have an idea of what an insurance company may look for when considering your business so you can take action and make any necessary repairs and be better prepared for the future. 

The characteristics of your home

The year the home was built. Older homes usually come with worn plumbing and electrical. It can also possibly be outdated and just not work as well. Newer homes usually up to date and carry less risk. In addition, older homes can sometimes be more expensive to repair due to parts being harder to find or more unique to the time. 

The condition your roof is in. The age and whether or not there are holes, or just added wear. These issues can all come up when the insurance inspector comes by. You may also want to look into whether or not the roof material affects your premium. 

The quality of the construction of the home. Do not count on your homeowners insurance policy covering the expense of bringing you up to code after a disaster. Most home insurance policies will not cover this. Home insurance companies may offer Order of Law endorsements and those can help pay for expenses regarding code adjustments made during the rebuilding or repair of your home.

The special features of the house. If you have certain features like a swimming pool or a jacuzzi, there’s a good chance you may have higher premiums. Options like those come with risk and needed repair. If you have a jungle gym in your backyard that could also be a feature that causes a rate hike. The special features of your home and the added risks they come with are always worth while to think about when getting home insurance. 

The location of the house

Is there the possibility of weather related risks? A standard homeowners insurance policy will not cover floods or earthquakes. You need additional coverage to be covered for these risks. There are some areas and insurance companies where you may not be able to find flood insurance. If you have additional questions on what may or may not be covered, please contact one of our wonderful agents! Call today 916 313 6100.

Do you live in an area prone to fires? In California we know about wild fires and how deviating they can be. Structure fires caused over $10 billion in property damage in 2018. When the insurance company determines your rate, they may look at things like the distance from your home to the nearest firs station. They may also look to see how really available fire hydrants are and how close they are to the home. Having fire extinguishers in the home may help and added safety measures are always looked at in a good light from your insurance company.

Is the neighborhood you live in common place for burglary or crime? Living in an area like this takes on greater risk and with more risk comes higher premiums. To help you off set the increase in cost you may want to look into setting up additional alarm systems and security cameras. Not only can this help deter thieves, it may also help you get a better rate on your home insurance premium. 

These are just a few of the factors that can determine the price of your home insurance. There are others that may effect you. From state to state and home insurance company to home insurance company, things can be different. If you have questions or just want help getting better homeowners insurance, give us a call. We’d love to hear from you! 916 313 6100