Average cost of home insurance

How to Calculate Your Home
Insurance Cost

Homeowners insurance cost is a combination of several factors.

A basic home insurance calculator includes the age of your home, the methods used in its construction, area considerations such as weather and crime rates.

All of these factors affect the decision what level of home insurance coverage you will need, and how much it will ultimately cost you.

When making a homeowners insurance estimate, start by considering the amount it would cost to completely rebuild your house with the current prices of labor and materials.

How much does The average
home insurance cost?

Unfortunately, the average cost of homeowners insurance has risen more than 50% in the past ten years. However, rates vary from state to state, also depending on the neighborhood and the home itself.

For example, the residents of Oregon have a lower average home insurance cost than homeowners in Florida who pay an almost four times higher price.

Regional weather risks probably cause this much higher average homeowners insurance cost for Floridians. This includes risks from hurricanes and special coverage needs, such as mold damage insurance due to the state’s high humidity.

Beside state factors, we are going to talk about some general considerations that determine how much is home insurance going to cost. We will also see some tips to calculate your homeowner's insurance cost using the insurance estimator.

Average cost of home insurance

Factors that determine your premium

What type of material is your home constructed

The materials used to build your home will affect the value of your home. You can check easily using some online estimator and get a pretty accurate insurance quote.

As an example, homes built with brick instead of wood may cost less to ensure. That is because they are less of a fire hazard. Furthermore, houses that have reinforced roofs, storm shutters, and other features designed to minimize the chance of loss cost less to insure.

The age of your home 

The age and square footage of your home affect the price per square foot to build a house by zip code and your insurance. 

The first factor on any insurance company’s list is going to be the age of the home and its construction type. Newer homes are constructed out of more fire-retardant materials, and also lose less energy due to improper seals on the house, which old houses don’t have. Additionally, newer homes will often include equipment such a sump pump in high water-level areas and carbon monoxide detectors.

These additions help to protect both the home and the people living in it. The homeowners of newer homes run less risk for loss caused by old or faulty internal systems, which makes the insurance less expensive.

Home rebuilding cost

In case you have a replacement cost policy, the estimated cost of rebuilding will affect the rate of your premium.

The cost to build a house calculator is also something you can easily find online. The cost of rebuilding your place includes both the price of materials and labor, plus changes due to inflation. This policy affects the amount of coverage you have is based on how much the replacement costs. 

Home crime rate 

The crime rate in the neighborhood affects your insurance cost as well. Theft and vandalism are two of the underlying factors in most basic home insurance policies.

The owners who live in a neighborhood with a high crime rate have a greater risk of loss, which means they need to pay higher costs to have their property covered by their insurance company. 

Weather conditions

What make home insurance rates go up

The possibility of damage from adverse weather conditions such as hurricanes, hail storms, tornadoes, and other natural disasters also affects insurance.

Therefore, the properties that are in an area that is frequently hit by tornadoes, hurricanes or other strong storms are going to cost more to insure. Since these conditions can cause catastrophic damage to your home, make sure to check what type of destruction is covered by your policy.

Typically, home insurance policies cover damage caused by windstorms, but they do not cover losses due to hurricanes or earthquakes.

Credit score and claims history

Interestingly, your credit score and claims history also determine the cost of your home insurance.

Your credit score can have an impact on how much your premium will cost or even whether a company will offer you protection at all. Fortunately, they cannot deny you coverage solely because of your credit score.

Having a bad or mediocre credit rating can prompt an insurance company to consider you a high risk to insure, which will raise the cost of your premium.

Your claims history also affects your total insurance coverage and cost. For example, if you have made many claims, insurance companies may consider insuring you and your property as a higher risk.

home insurance calculator
 The location of your home

The proximity of your home to a fire station or a fire hydrant is also an essential factor. That is because this distance determines how quickly firefighters can respond to a fire at your home. Moreover, this can make a vast difference between minor damage and total loss. You are probably starting to get how home insurance providers calculate your premiums.  The closer your home is to a fire station, the lower the risk of loss, as well as your premium, accordingly. The lower the risks are, the lower the insurance costs are.

Home insurance and moving

When moving to another state, make sure to know the average home insurance costs there. For example, if you are relocating to Missouri from a long distance, you will probably be pleasantly surprised by the low home insurance premium. On the other hand, if you are moving to Louisiana or Florida, better start saving money, since premiums are pretty high.

Home Insurance calculator

The best and most accurate way to determine your house insurance is to use a homeowners insurance calculator. You can easily use this home value calculator online and plan your budget accordingly. Moreover, now that you know all the factors that affect your insurance premium, you have the opportunity to make an impact on it.

For more information on home insurance rates, or quotes call 314-569-1010 or click 24/7 for quote requests.

John Espenschied

John Espenschied owns and manages one of the top insurance brokerages for auto, home, and life insurance in the US. John is a much sought-after resource for journalists seeking his expert insight and knowledge of helping consumers find affordable coverage and advice.

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