Average Home Insurance Cost in 2022: All You Need to Know
Average Home Insurance Cost in 2022: All You Need to Know
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The annual average home insurance cost in the U.S is $1383 in 2022 for a dwelling coverage of $250,000, according to Bankrate. Factors like your location, your state, the type and amount of coverage you choose, your credit score and many others can affect this amount.
In this blog
How Much Does Average Home Insurance Cost
How Much Is Home Insurance In Different States
Typical Home Insurance Cost Factors
Conclusion
Frequently Asked Questions (FAQs)
How Much Is Home Insurance in Different States
Here is an approximate estimation of the yearly premium you may have to pay according to the state you live in:
State
Average home insurance cost (annual)
Alabama
$1,597
Alaska
$1,001
Arizona
$1,216
Arkansas
$2,104
California
$1,000
Colorado
$1,690
Connecticut
$1,284
Delaware
$770
Florida
$1,358
Georgia
$1,400
Hawaii
$400
Idaho
$890
Illinois
$1,422
Indiana
$1,100
Iowa
$1,390
Kansas
$2,767
Kentucky
$1,850
Louisiana
$1,813
Maine
$956
Maryland
$1,130
Massachusetts
$1,307
Michigan
$1,120
Minnesota
$1,785
Mississippi
$1,773
Missouri
$1,572
Montana
$1,878
Nebraska
$2,900
Nevada
$822
New Hampshire
$794
New Jersey
$751
New Mexico
$2,024
New York
$987
North Carolina
$1,297
North Dakota
$1,941
Ohio
$1,116
Oklahoma
$3,518
Oregon
$712
Pennsylvania
$736
Rhode Island
$1,193
South Carolina
$1,142
South Dakota
$1,997
Tennessee
$1,695
Texas
$1,883
Utah
$646
Vermont
$686
Virginia
$1,017
Washington
$900
Washington, D.C.
$909
West Virginia
$1,127
Wisconsin
$990
Wyoming
$805
Source: Bankrate
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Typical Home Insurance Cost Factors
When calculating an average home insurance cost, insurers consider many factors. Some of these factors are:
Replacement Cost
The more your home costs to replace, the more you will likely pay in coverage. This is because replacement cost takes a lot of variables into consideration. It changes depending on square footage and local construction costs as well as its unique features and architecture.
However, you can get an approximated estimate by basic calculation. Contacting your insurance agent or insurance provider will help!
Credit Score for Home Insurance
Insurers use credit scores as a factor in determining the likelihood of timely premium payment. Credit is often used to measure risk which helps with determining the rate of home insurance. Poor credit scores may lead insurers to see you as someone who is more likely to file claims in comparison to those who have very good credit.
Your personal credit score can highly affect the premium rates thus changing the average home insurance cost for you. A good credit score could lead to being perceived as a lower risk which will help you get a reduced rate.
Claims History
When it comes to determining the average home insurance cost, a history of filing claims might indicate an even greater risk for the homeowner’s insurance company.
When you make your first claim on your homeowners’ policy you are likely to do so because something unexpected happened that may have left you financially responsible or worse: without a way out of the difficult situation.
Insurance companies often base decisions like this on data patterns. However, claimants who have filed multiple times before may be considered higher risk than those with just one previous claim.
Personal Demographics
A person’s demographics, i.e., their age, marital status, and gender make a big difference in determining the cost of a home insurance premium.
According to Bankrate, insurance companies are likely to charge lower rates to married couples because of the common assumption of them being in a lower risk category.
There are many insurance companies that tend to capitalize on their senior clients. According to Quote Wizard, if you are someone who is over the age of 55, you might be eligible for a senior citizen discount when buying home insurance.
Deductibles
The homeowner’s insurance deductible is the amount that a homeowner will pay out of pocket before they can receive compensation for repairs to their property. It also sets how much you’ll save on your monthly premium.
If you set your deductible higher, then it could decrease the premium amount every month. However, if there is a claim in an accident that happens to be very costly then it might cost more than what was saved on premiums.
Conclusion
Home insurance is extremely important for your home to be well protected from many kinds of uncertainties. With knowledge about average home insurance cost and how you can get a lower premium, we are sure you will be able to insure your home without any trouble.
If you have any additional queries about home insurance, feel free to reach out to us. Connect to a local insurance agent today!
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Average Home Insurance Cost from MayaFontenot
Frequently Asked Questions (FAQs)
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What Are Some Common Exclusions From Home Insurance?
Homeowners should be aware that there are some common exclusions from a typical homeowner’s policy. The types of damage not covered by insurance typically include earthquake, flood, war-caused property damage, and wear and tear. Damage caused by mold or termites is also excluded in many cases.
Is Home Insurance Policy For Condo Different?
Technically, yes. Although a condo is a category of home too, the insurance policy differs. Condo insurance (an HO-6 policy) covers the important areas of personal property and liability. It also provides coverage for some situations specific to condominium unit owners, such as their walls in which means covering their personal liability, property inside a condo unit including its interior – essentially anything excluded from the association’s policy.
Multiple coverage options on your fingertips.
Choose from various options and select the policy
that best suits your requirement.
Connect Today
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