How Much Does Homeowner's Insurance Cost?

I get a lot of phone calls or emails from clients and potential asking me how much a home will cost on a home they are about to make an offer on. My initial response is, “it depends.” I need to have conversations with my clients or potential clients to create an accurate solution that will fit their needs while also verifying their claims history. Not every client or home is equal, so communication by phone, text, or email is essential to ensure we provide the best solution for any customer. There is not a one size fits all approach, even though certain companies may try to get you to believe so.

Rating Factors

Numerous rating factors go into a home insurance rate, and each carrier is a little different in how they choose to come up with a rate for any specific situation. The main factors are as follows:

·        Prior Home Claims

·        Age of the Home

·        When heating, roofing, wiring, and plumbing were replaced

·        Number of Occupants of the home

·        How the home is used. (i.e., short or long term rentals or owner-occupied)

·        If you are bundling your auto insurance or not

These are a few of the significant factors that you can impact. Unfortunately, some things are a bit out of your control:

·        Probability of Earthquakes

·        Probability of Tornado

·        Probability of Hurricanes or Typhoons

·        Probability of Wildfire

Typically, you know if the above are factors for you going into the conversation. If you are one of my clients in Texas or Florida, you know that your rate will be impacted heavily based on your proximity to the coast. If you are one of my Washington, Idaho, or California clients, you know that your wildfire probability may impact you if you are close to a recent wildfire zone. The risks of insurance are never-ending, and part of my job is to help you understand the risks you face and how we can mitigate some risks and accept other risks, all the while not breaking the bank.

How to Reduce Home Insurance Cost

There are various ways to reduce the cost of home insurance, and it starts to work with an expert that understands the appropriate levels of coverage. Calling an 800 number is not the solution. As a licensed insurance broker in multiple states with up to 17 different options, I provide opportunities and an understanding of what coverages are essential for you to have. The relationship with an agent is significant in reducing your overall home insurance cost because it can be under or over-insured without realizing it. Essential tips to reduce insurance costs:

·        Increase your deductible (what you pay when you have a claim)

·        Make sure that you have all the appropriate discounts

·        Ensure that you are working with someone that can check multiple company’s rates

·        Ensure the coverages are accurate

·        Before putting in a claim, connect with your agent office to verify if it makes sense

·        Ask questions



Although these tips are fundamental, they are a good starting point to help you reduce your risk while ensuring you are adequately covered. To find out more about how much homeowners insurance could cost and find better coverage for price, click here to share your information.