While home insurance is not a legal requirement in the United States, it is still something that all homeowners are advised to invest in. After all, your home is likely to be the biggest investment you have ever made!
The last thing you want is for the value to diminish massively because you have not put protection in place.
The trouble is that the insurance market can be very overwhelming. You may have already done a quick search online only to be overhauled with information. Which policy is right for you? Why do prices differ so much? How much should you pay? We know how you feel.
Why do home insurance quotes differ so much?
The reason why home insurance quotes differ so much, and consequently cause so much confusion, is because a lot of different factors are considered when determining the premium you will be charged.
By understanding the different variables that are at play, you will be able to understand the quote you receive.
Firstly, your location is going to play a role. Insurance is naturally more expensive in some states than in others. It’s also going to vary between city to city, location to location.
Your level of coverage also matters. A basic insurance policy, which only covers the bare minimum, is going to cost a lot less than a comprehensive policy that covers all of your contents as well.
The size of your property impacts your premiums too. A small flat is going to be a lot cheaper to insure than a large five-person sized property.
So, what is the average cost of homeowners insurance in the United States?
According to the NAICX, the average yearly premium for home insurance in the United States is $1,211.
The research also sheds some light on the different variables and how they impact the premiums charged.
For example, the average premiums for a property that is estimated $49,999 or under would be $633. On the flip side, for properties worth more than $500,000, the average premium will rise to $2,149.
This indicates how your property’s worth has a monumental impact on the quote you receive from your insurer.
What about your location? Well, that matters too, although the price fluctuations aren’t as wide as those in terms of your property’s worth.
You will be pleased to learn that Michigan is one of the more affordable states in terms of home insurance, with the average cost being $919, which is clearly considerably below the nationwide average.
Some of the cheapest places for homeowners insurance include Ohio, with the average being $895, and South Dakota, with an average of $898.
The most expensive locations for home insurance in the United States include Maryland, Georgia, Texas, Delaware, and Virginia. This is based on statistics from S&P Global Market Intelligence.
Contact us today to find the best policy for you
If you are looking for the best homeowner’s insurance policy, please do not hesitate to contact LSI Insurance today for more information. We will happily help you to find an insurance plan that makes sense for you and your home!