Home Insurance

Average Homeowners Insurance Summary: A Look at the National Average and Factors That Affect the Costs

Are you a new homeowner, or an existing homeowner who is looking for more affordable insurance? Are you concerned that you are being charged too much money and want to know what the average homeowners insurance costs? While it obviously varies from state to state, the National Association of Insurance Commissioners claims that the average annual policy for homeowners’ insurance premium is around $1,192.

The three states where it the most expensive are all coastal states around the Gulf of Mexico: Texas, Florida, and Louisiana. It can also be costly in “Tornado Valley” states like Kansas and Oklahoma. It’s not just states that are vulnerable to natural disasters that have higher-than-average insurance premiums. Homeowners and renters insurance can cost a lot in areas that have very dense populations and have high crime rates.

Some risks you have no control over, such as the location of your home (unless you plan on moving) and your credit history, but there are some risks that you can modify and lessen in order to help reduce the cost of your average homeowners insurance. For instance, you can add modifications and upgrades to make your windows more sturdy and your roof more weather-resistant. Adding security technology is always a good way to get discounts as well. Make your house more difficult for thieves to break into.

Do what you can to make your entire yard a safe, secure and private place as well. Eliminate potential hazards such as tree stumps, rough patches, and anything that someone could potentially trip over or injure themselves on.

How to Bring Down the Cost of Average Homeowners Insurance

A few other additions to your home can help bring down the cost of insurance:

• Fire extinguishers
• Smoke detectors
• Wind protection
• Deadbolts on doors
• Sprinkler system

What is the biggest contributor to property losses? According to the Insurance Service Office (ISO), 97% of homeowners insurance loss is due to property damage from things like fire and lightning and strong wind. Water damage and freezing are also large contributors. If you live in near a body of water, or in an area where it gets very cold during winter, you’ll need to insulate your home as much as possible.

Flooding is more difficult to deal with, but you can still apply coats and sealants and even raise your house a bit on stilts if you have enough money with which to do so.

The most important thing you can do to protect your home, regardless of the price of average homeowners insurance in your area, is to get quality coverage from a company like Lemonade Insurance. It offers an interest approach in how it handles payments and is very quick to process claims and reimbursements.

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