To calculate your home insurance premium, consider where you live and how much coverage you require.
When you buy a house, you must also purchase homeowners insurance. And, while it isn't your largest expense, the amount you pay for insurance has an impact on your home ownership costs.
According to InsuredCircle most recent rate analysis, the national average cost of home insurance is $1,784 per year. However, the amount you pay could be higher or lower depending on a variety of factors. Here's how to figure out how much your home insurance will cost.
To get an average in your ZIP code, use the homeowners insurance calculator below, or follow the steps to estimate for yourself.
A typical homeowners insurance policy is divided into six sections:
Each of these types of insurance has its own cap. Higher limits will cost more, but the extra coverage will provide you with more financial protection if disaster strikes.
In most cases, you'll need enough dwelling coverage to cover the costs of completely rebuilding your home. This amount can be estimated with the assistance of an insurance agent.
Several other coverage limits are frequently calculated as a percentage of your dwelling coverage — typically 10% for other structures, 50% to 70% for personal property, and 20% for loss of use.
Liability coverage typically begins at $100,000 and can be increased based on your needs. The typical limit for medical payments coverage is $1,000 to $5,000.
The amount you pay out of pocket for a covered claim before insurance kicks in is known as your insurance deductible. A typical home insurance deductible ranges between $500 and $2,000.
The higher your deductible, the lower your premium. However, you should think about whether the annual savings are worth paying more in an emergency. Choose a lower amount if you are concerned about not having enough to cover the deductible.
The physical characteristics of your home influence the cost of insurance. This may include:
A swimming pool or other "attractive nuisance" will almost certainly necessitate additional liability coverage.
Location can also be significant. Natural disaster risk and proximity to the coast are two factors that insurers may consider.
You may require coverage for events that are not covered by a standard home insurance policy. Floods, earthquakes, sinkholes, and clogged drains are a few examples. Though this additional coverage will cost you more, it may be useful if your home is in danger.
Some insurers provide tools to help customers estimate the cost of their home insurance. These features typically use a limited set of data, but they will provide you with an idea of your potential costs. Find out more about house insurance quotes.