What are the factors that affect homeowners insurance costs?

You just bought a house and want to manage your monthly expenses. One of your most important financial investments is your homeowners insurance. There are many factors that go into determining the average cost for homeowners insurance. Did you know that homeowners insurance costs can be affected by the breed of your dog? Let’s look at how homeowners insurance is calculated and what you can expect.

Let’s look at how homeowners insurance is calculated and what you can expect.

History of insurance and claims

Here are some factors to consider when determining your homeowners’ premium:

Credit history
Score insurance
Coverage gaps
The amount of homeowners’ claims
Frequency of homeowner claims

Qualities of your new home

Age of your home – Older models can be more costly to insure, as they are often not updated according to local building codes.

Types of structures – Primary material (such brick or stone) and roof type (such composite shingle, slate or slate) are all taken into account.

Safety and security features – Installing the most recent alarm systems and smoke detectors could lead to a lower premium. Sprinkler systems, fire extinguishers and deadbolt locks are other devices that can help lower your payments.

The location of your house

Your location can have a major impact on the cost of your homeowners insurance. You will probably need to have additional coverage if you live in an area that is susceptible to earthquakes or hurricanes.

Your location is important, as well as your locality. A close proximity to a fire station or police station is a contributing factor, as is living in an area that has a high rate of burglaries.

States with high-quality vs. low-quality homeowners insurance

The cheapest states to buy a home

Ohio

According to updated 2021 numbers Ohio is the most affordable state to insure a house, with an average annual premium $895.1

Missouri

Missouri is the second-lowest state to insure a house, due to its low end home values2and low population density3. With an average annual premium $897.4, Missouri is the most expensive state to insure a home.

South Dakota

South Dakota has the lowest population density at 167 per square mile5. This makes it the third-cheapest state to insure a house, with an average annual premium $898.6

The most expensive state to buy a home

Maryland

Maryland has the highest home insurance premiums in 2021. The average annual rate is $1,212.

Virginia

Virginia has the second highest average home insurance premiums, at $1,181.

Delaware

“The First State” is ranked third in the list of most expensive states to insure your home, with an average annual rate of $1,172.7