Providing the ultimate protection for a house is a primary goal for any homeowner, but finding the best homeowners insurance quote can vary based on a wide variety of geographical and financial factors.
According to research, the average annual home insurance premium is just over $1,300, hovering just around $100 a month. But in many cases, sometimes you can’t even control certain elements that will dictate how much you’re spending every year on homeowner’s insurance.
The advantages to working with a professional and reputable homeowners insurance company are vast and essential. But before you start seeking out the best homeowners insurance premium money can buy, there are several important factors you should be aware of that will significantly impact how much you’re paying for homeowner’s insurance.
Take a look at some of the biggest components that affect home insurance costs, so you can find the perfect premium to match your home insurance needs.
Location is Everything
From the population of the city your home resides in to its regional climate conditions, the location of your house is essentially the biggest factor when determining how much your home insurance is going to cost.
Take a look at the five states with the highest average home insurance costs:
● 1) Oklahoma - $4,445/year
● 2) Kansas - $3,931/year
● 3) Florida- $3,643/year
● 4) Arkansas - $3,439/year
● 5) Texas - $3,429/year
It’s no coincidence that all of these states endure various severe weather conditions every year, such as tornadoes and hurricanes.
On top of the typical climate of where your home resides in, there are so many other regional factors that play into home insurance costs, such as:
● Distance from large bodies of water
● Proximity to a fire station
● Population of the town
● Crime rates in neighborhood and more
All of these location factors will determine how much you’re paying for homeowners insurance before your homeowners insurance company will take your personal and financial history into consideration.
Home Value & Condition
Next up, homeowners insurance companies will begin assessing your house in terms of its value and condition to come to a conclusion on how much you’ll pay for insurance. Obviously, the more valuable your house is, the more you’re going to pay for insurance.
The National Association of Insurance Commissioners details the average home insurance premiums for homeowners seeking the following amounts of coverage:
● $870/year for $100,000–$125,00 in coverage
● $1,467/year for $400,000–$499,000 in coverage
● $2,149/year for $500,000 in coverage and above
Any necessary rebuilding or repair costs will also be factored into your homeowner insurance premium, such as any bathroom, kitchen, or exterior remodeling projects, and the projected increase value of your home will be reflected in the amount you pay for home insurance. Vintage or more older homes are also subject to higher home insurance costs on average as well.
Credit History & Personal Finances
As with essentially all major purchases and expenses in life, much of what goes into evaluating your homeowner insurance costs depends on your credit and financial history. While this varies from state-to-state, many home insurance companies will provide you with their own “insurance score” when assessing your financial qualifications for receiving homeowner’s insurance, which essentially equates to the same factors that dictate your credit score – debts, payment history, outstanding balances, etc.
The better your credit score, the easier it will be to receive a fair price on homeowner’s insurance. Some insurance companies will interpret poor credit scores as a signal that you might be more prone to filing insurance claims regarding various housing issues.
If you’re paying your bills on time, successfully managing your credit balances, and not having any debts that are currently in default, then it’s more than likely that your credit score will be sufficient enough to obtain a reasonably priced home insurance quote.
Protect Your Home With Quality Homeowner’s Insurance Quotes
At the end of the day, you can’t put a price on peace of mind when it comes to proficiently protecting your home and its valuables. At Value Plus Insurance, our team of experienced brokers will help you find the best value and custom coverage options available with your home insurance needs.
To learn more about our personalized home insurance policy choices, give us a call at 952-435-0550 or contact us online today!