If you’re budgeting for a new home, it’s important to incorporate the average cost of home insurance. Insurance rates are composed of many factors, and knowing these factors can help you estimate the potential expense.
Here is a quick guide to the variables determining the average cost of homeowners insurance:
Home location & age
Homeowners insurance cost is partially determined by certain aspects of the home itself. The biggest factors include location, age and condition. If your home is located in an area prone to extreme weather or other potentially damaging conditions, it’s considered a higher risk to the insurer and may incur a higher premium.
Older homes are more likely to need repairs, and those repairs can cost more. Similarly, if your home’s condition is less than ideal, your insurance premium may be higher as a result.
Coverage details
There are several variables in your policy that go into the average homeowners insurance cost. The most important variables are:
- Deductible amount - Deductible amount affects how much you pay monthly and how much you may need to pay out of pocket for a claim. A higher deductible means a lower premium cost, but a higher out-of-pocket cost if you need to file a claim.
- Dwelling coverage amount - The portion of your policy that protects the physical structure of your home can vary based on size, condition and age of your home.
- Personal property coverage amount - Also included in your average insurance cost is protection for the value of your personal belongings, such as clothing, furniture and appliances.
Other factors
There may be other factors that impact the cost of homeowners insurance. Some of these are related to your home and lifestyle, like whether you have a pool, trampoline or aggressive pets. Others might concern your financial history, including credit score and past insurance coverage.
If you want more details about what goes into the average cost of home insurance, consult your insurance provider.
About the Author
Meghan Riley Bowling
Hi, I'm Meghan Riley Bowling!
As one of Atlanta's top real estate agents and Atlanta Board of Realtors Lifetime 'Top Producer', I bring over 19 years of experience as both a Realtor and a licensed interior designer to the table. My extensive background uniquely positions me to be your best advocate in today’s dynamic market. I have a keen eye for a home's true potential and the expertise to navigate every twist and turn of the transaction process.
I understand what it takes to sell homes quickly and know how to create spaces that feel open, fresh, and inviting. For buyers, I excel at helping you envision the potential of a property, helping you find the perfect home to meet your needs.
With a commitment to excellence, I am your best source in real estate, offering dedicated service, strong negotiation skills, and deep market knowledge. I am your greatest asset to help achieve your goals!
