How Much Is Home Insurance?
Regardless of whether you own a house or a condominium, home insurance is required on all types and lengths of mortgages.
While every insurance policy differs in what they cover, the basics are generally the same. Every insurance policy requires that the insurer covers damage to both the exterior and interior of the house, loss of personal belongings and personal liability for damage that’s caused by family members.
How much is home insurance depends on a variety of factors. While the average for home insurance in 2010 was $791.00, your premium could be higher if you live in a high crime neighborhood, if the overall condition of the house is poor or if your credit score is low. Due to the high rate of in Florida, Mississippi and other southeastern states, insurance rates in these areas are much higher than the rest of the country.
The type of coverage that you choose will also affect your insurance premium. The least costly insurance coverage is based on the actual cash value of the home. This type of insurance covers the value of your home and belongings after the depreciation is taken into account. If something major happens to your house, you likely won’t be able to recover all of the losses under this type of coverage.
Aside from an umbrella policy, the most expensive type of home insurance coverage is known as guaranteed replacement cost. This type of insurance is the most costly but offers the most coverage. Under the guaranteed replacement cost, the insurance company will cover the entire cost of repairing your home and replacing your items.
Umbrella policies will provide you with the best coverage available. The insurance company will cover anything that’s related to the home including physical repairs, personal injury, personal belongings and alternative rental costs in cases of total home losses. Often times, homeowners choose this type of policy because of the amount of coverage offered for only a few hundred more dollars per year.
How much is home insurance also depends on what types of theft deterrent and alarm devices are installed throughout your home. To put yourself in the best possible position for a low premium, make sure that you have installed a fire alarm, burglar alarm and a variety of deadbolt locks in strategic locations throughout your home.
Disclaimer: This is for information purposes only and NOT a recommendation from Mills Insurance. Please contact a licensed insurance specialist to discuss insurance coverage’s and laws.