One of the first things most people consider before buying a house is the cost of homeowner’s insurance. After all, your mortgage is only the tip of the iceberg. You’ve also got to pay for maintenance, taxes, homeowner’s association fees, and the dreaded insurance.
National Averages for Homeowner’s Insurance
The average cost for homeowner’s insurance on a national level was $674.23 in December 2010, according to HomeInsurance.com. Keep in mind, however, that the numbers change on a regular basis. If you know about all the factors that are necessary to calculate house insurance then you can do this on your own as well. There is https://www.410injury.com/ that can help you with along with some of the best tips for house owners to reduce their insurance premiums.
State Averages for Homeowner’s Insurance
The real question, though, is what is the average cost for homeowner’s insurance in your particular state. The answer can vary widely. For example, the average in Missouri is a whopping $911, while Maine residents pay an average premium of only $461. The more specific you get, the more accurate your estimations will be.
You might be surprised by the average cost for homeowner’s insurance in your state. I thought that California would be right up there in the highest averages, but in reality, it’s only $788, which is lower even than Texas’s average at $878. Then you’ve got Idaho, whose average is just over $350.
It also helps to look at the trends for the average cost for homeowner’s insurance. Some states, such as Texas and Connecticut, are decreasing as the months go on, while states like Georgia and Nevada are increasing their rates.
Other Factors to Consider
Although the average cost for homeowner’s insurance in your state might help you get an idea for what you’ll pay, your actual premium may be much higher or lower than that average. Other factors come into play, and you can’t rely on estimates based on generic data.
For example, if you buy a house in a flood plain, you’re probably going to pay quite a bit more for homeowner’s insurance. The same is true if you live in an area where tornadoes, hurricanes, tsunamis, earthquakes or wildfires are likely to become a problem.
And don’t discount the characteristics of the home you eventually purchase. How old is it? Has it been inspected? Are the appliances up-to-date? What about the plumbing and electrical wiring?
You might want to buy a home where you will have to pay more in homeowner’s insurance, but where the taxes aren’t quite as high as other areas. Remember that the costs of homeownership can balance out, so try to look at the big picture rather than using just one factor to make your decision.
Don’t even consider putting in an offer on a home until you talk to your insurance agent. You might be able to better choose between different candidates if you know how much you’ll be paying in annual premiums.