Homeowners insurance exists to help cover one of your largest investments. At
its most basic level, home insurance provides financial protection against
or damaging events that may affect your home, such as theft, fire, storms and
incidents that happen on your property. If you have a mortgage, your lender will
require you to carry homeowners insurance. When you purchase a homeowners
insurance policy, you pay either a monthly or annual fee.
Typically, insurance experts recommend purchasing enough coverage to rebuild your home and replace the value of the assets inside in the event that it is destroyed. By doing so, you reduce the chance of being left with costly out-of-pocket expenses and allow yourself to recoup your losses more quickly. It is important to note that the cost to rebuild your home is not the same as your home’s market value.
While the core purpose of homeowners insurance is consistent regardless of the home insurance company you choose, every provider is unique in its policy offerings. You have the ability to personalize your policy by choosing your coverage limits and endorsements and taking advantage of any available discounts. Factoring in these variables, along with your personal and financial situation, you will likely see a range of premiums when getting home insurance quotes from different companies. To compare quotes effectively, it might help to know more about home insurance.
Where you live, the condition of your home and the cost to replace it play the
most significant role in
determining your home insurance premium, but certain personal and financial factors, such as your marital status and
claims history may also influence your rate. The insurance company’s goal is to
collect information that helps determine risk to calculate your premium. When
you start looking for a home insurance policy, it may help to do some research
to determine your home’s replacement cost and the total value of your personal
belongings to calculate how much coverage you will need. You might want to speak
with a licensed insurance agent to determine what you actually need and what
coverage options are available.
|State||Average annual cost||Percent of median household income|
|Home insurance company||Average annual premium|
Damage from floods is not covered under standard homeowner’s insurance
is available through the National Flood Insurance Program (NFIP) and some
private insurers. Flooding can cause costly damage to your home and
belongings and could happen at any time. If you live in an area prone to
flooding, your lender may require you to purchase flood insurance.
On average, U.S. homeowners spend $700 per year on flood insurance, although like any insurance policy, your actual rates will vary. Flood
policies usually require payment in full, so it is a good idea to research
any area you plan to move to so you know in advance if flood insurance will
If you rent a home or apartment, you may want to consider purchasing
renters insurance. Rather than covering the structure of a home, renters insurance primarily
covers your personal property, since renters do not own their homes or
apartments. Liability and loss of use coverage are also typically included
and endorsements can be added to customize the coverage. Renters insurance
is generally cheaper than homeowners insurance.
Bankrate utilizes Quadrant Information Services to analyze 2021 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Quoted rates are based on 40-year-old male and female homeowners with a clean claim history, good credit and the following coverage limits:
The homeowners also have a $1,000 deductible and a separate wind and hail deductible (if required).>br> These are sample rates and should be used for comparative purposes only. Your quotes will differ.