How Much Does the Average Person Spend on Homeowners Insurance

Homeowners insurance is a crucial investment for any homeowner. This type of insurance provides coverage in the event that your home is damaged or destroyed. It can also help protect you from liability in the event that someone is injured on your property. Home insurance is a vital part of protecting your investment in your home.

In this article, we’ll explore how much the average person spends on homeowners insurance and more. Keep reading to find out how much you should be spending on home insurance, and what factors affect your premium.

How Much Is The Average Cost Of Homeowners Insurance?

The Average Cost Of Homeowners Insurance

Forbes Advisor found a national average of $1,854 a year for homeowners insurance for a house insured for $300,000. However, the cost of homeowners insurance can vary significantly depending on your location and the coverage you choose.

For example, the average homeowners insurance policy in Florida costs $2,579 per year, while the average policy in Maine costs just $644 per year. The cost of your homeowners insurance policy will also depend on the type of coverage you choose.

Basic homeowners insurance policies typically cover the cost of rebuilding or repairing your home in the event of a natural disaster, while comprehensive policies also cover the cost of your belongings.

How much home insurance do I need?

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The amount of home insurance that you need depends on a number of factors, including the value of your home, your belongings, and the state you live in. The National Association of Insurance Commissioners (NAIC) recommends that homeowners insure their homes for at least 80 percent of their replacement cost.

For example, if your home is worth $300,000, you should have at least $240,000 worth of home insurance. This will protect your home in case it is damaged or destroyed and help cover the cost of rebuilding or repairing your home.

How can you save money on your homeowner’s insurance?

save money on your homeowner's insurance

There are a number of ways to save money on your homeowner’s insurance policy. One way is to increase your deductible. This is the amount you have to pay out of pocket before your insurance policy kicks in.

For example, if you have a $1,000 deductible, you will have to pay $1,000 out of pocket before your insurance policy will cover any damages. Increasing your deductible can save you a significant amount of money on your premiums.

You can also save money on home insurance by bundling your policy with other insurance policies, such as auto insurance. Many insurance companies offer discounts for bundling policies.

Finally, shop around for the best rates. Different insurance companies offer different rates, so it’s important to compare policies and rates before you decide on a policy.

How often should I review my homeowner’s insurance policy?

homeowner’s insurance policy

It’s a good idea to review your homeowner’s insurance policy on a yearly basis, or more often if you experience any life changes that could impact your coverage.

For instance, if you purchase a new home or add on to your existing home, you will need to update your policy to reflect the new property value. If you make any significant renovations, be sure to notify your insurer, as this could also impact your coverage.

You should also review your policy anytime there is a major weather event in your area that could potentially damage your home.

Find the right homeowners insurance for your needs

Overall, homeowners insurance is an important investment that can protect a person’s home and belongings in the event of a disaster or other unforeseen event.

The amount of coverage a person needs will vary based on their individual needs and possessions, but it is generally recommended to have enough coverage to rebuild or repair one’s home if it is damaged or destroyed.

Author

  • Roxanne is currently a journalist at Insurance Business New Zealand and NZ Adviser. She graduated with a degree in Communication from De La Salle University and worked as a journalist for an international news site before joining Key Media. In her freelance work, she contributed articles to one of the leading publications in the Philippines. She also organised events and copy edited content for non-profit organisations. She now writes news for today’s sophisticated commercial insurance, mortgage, and financial professionals in New Zealand.

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