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What is the Average Cost of a Homeowner’s Insurance Policy?

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At The Morgan Law Group P.A., our Florida, Louisiana,  Mississippi, and Puerto Rico insurance claims attorneys know that no two territories, states, or cities share the same homeowner’s or condo owner’s insurance premium rates.

The national average cost of homeowner’s insurance is $1,249 per year.

However, that rate changes based on location, the type of home, and the value of the property.

While homeowner’s insurance may seem like a financial burden, the real value is an investment in the protection of your home, belongings, yourself, and your family.

Here is what you need to know about how insurance companies evaluate homeowners’ insurance policies and their premium costs.

What are the Major Factors Insurance Companies Use to Determine Homeowner’s Coverage Costs?

The first-factor insurance companies use to determine your homeowner’s insurance policy premium is where you live and your region’s weather-related risks.

Florida, Louisiana,  Mississippi, and Puerto Rico all have significant hurricane and storm risks that factor into the premium’s costs — especially when the home is closer to the coast.

In Florida, for instance, Miami homeowners’ insurance premiums can average $3,033 annually, while Orlando’s homeowners pay an average of $1,265 per year.

Other primary factors that will determine the cost of a homeowner’s insurance policy may include:

  • The amount of coverage you carry
  • The characteristics of your home, and its replacement costs
  • Your deductible
  • Your insurance score, claims history, and available discounts

These variables mean that the cost of home insurance fluctuates for just about everyone.

How Can I Make My Homeowner’s Insurance More Affordable?

It is possible to control some of the aspects that contribute to your homeowner’s premium, potentially getting to a lower cost.

While you want to ensure all your property is covered, the first thing you can do to lessen your insurance premium is to comparison shop.

Comparison Shop

Request a quote from a few different insurance providers and consider more than just the price. Review the company’s reputation, check online reviews, and look closely at the amount and type of coverage offered.

Get the Right Amount of Coverage

Choose an insurance provider that will help you determine the appropriate amount of coverage for your home, your belongings, and your liability.

You will want to be adequately protected without having frivolous coverage options that add to your deductible.

Ideally, your policy will offer replacement cost coverage for both your home and your belongings.

Rethink Your Deductible

Most of the time, a higher deductible means a lower premium.

However, when it is time to make a claim, the deductible should not become such a financial burden that you do not want to — or are financially unable to — file a claim. Consider a premium amount that allows you to meet in the middle of the two.

Make Your Home Safer

Certain updates can make your home safer while lowering your homeowner’s insurance rates.

They include:

  • Adding a generator
  • Replacing the roof
  • Mitigating wind risks
  • Installing automatic water shut off valve
  • Upgrading your HVAC, electrical, and plumbing systems
  • Investing in a centrally monitored security system

Boost Your Credit Score

Most insurers can and will use your credit score as a factor to determine your premium. Typically, the better your score, the lower the rate.

Review Your Policy When You Renew

At The Morgan Law Group, we talk to our clients often about reviewing their insurance policies annually, to ensure the reality of their living situation is covered by the insurance policy and to ensure they are getting the best rate.

Are You Filing a Homeowner’s Insurance Claim? We Can Help.

If you are confronted by damage to your home or condo and are filing a homeowner’s insurance claim, contact our experienced insurance claims attorneys in Florida, Mississippi, Louisiana, and Puerto Rico at 888-904-2524 to schedule a free consultation and learn how we can help you pursue the outcome you deserve from your insurance policy.

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