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Top 5 Things You Need to Know About House Insurance


When purchasing a house, it is important to understand the different types of insurance that are available to you. In today’s blog, we will go through the top five things you need to know about house insurance. Whether you are a first-time homebuyer or someone who wants to update their current coverage, this information will help you make informed decisions to protect your investment.

-Average Cost of House Insurance

According to the National Association of Insurance Commissioners, the average cost of house insurance is $1,192 per year. However, prices vary from state to state. For example, if you live in Kansas, Florida, Texas, or Louisiana, you can expect to pay an additional $300 to $500 per year compared to the national average. On the other hand, there are individuals in these states who manage to find insurance for as low as $600 to $700 per year. The location of your property, whether it is in an urban or rural area, also plays a significant role in determining the cost of your insurance.

-Factors Affecting Insurance Premiums

Several factors can impact the cost of your house insurance. These include:

  • Age of the home: Older homes are considered riskier to insure, as they may have outdated plumbing and electrical systems.
  • Deductible: The most common deductible for house insurance is $1,000. Higher deductibles can lower your premium, but make sure you are comfortable with the out-of-pocket expenses in case of a claim.
  • Credit history: Just like with mortgage loans, having good credit can lead to lower insurance premiums.
  • Property features: Additional structures, such as sheds, fences, and pools, can increase the cost of your insurance.

-Understanding Coverage Types

When it comes to house insurance, there are several coverage types to consider:

  • Coverage A: This covers the cost of rebuilding your house in case of a total loss. It is important to note that this coverage is based on the cost of rebuilding, not the market value of your home.
  • Coverage B: This covers other structures on your property, such as sheds and fences, that are not attached to the main house.
  • Coverage C: This covers personal property inside your home, such as furniture and electronics. It is recommended to opt for replacement cost coverage, which pays the current value of your belongings, rather than their original purchase price.
  • Coverage D: This covers additional living expenses if your home becomes uninhabitable due to a covered loss. It can help with the cost of temporary housing and other related expenses.
  • Coverage E: This provides personal liability coverage in case someone is injured on your property and decides to sue you. It extends beyond the boundaries of your home, covering incidents that occur outside as well.
  • Coverage F: This covers medical payments for injuries sustained by guests on your property. It ensures that their medical expenses are taken care of, reducing the likelihood of a lawsuit.

-Importance of Doing Your Own Research

When shopping for house insurance, it is crucial to do your own research and not solely rely on referrals. While referrals can be helpful, they might not always lead you to the best insurance provider for your needs. Take the time to review potential insurers and read customer reviews to ensure you are making an informed decision.

-The Benefits of Bundling

Bundling your house and auto insurance can result in significant savings. Many insurance companies offer discounts ranging from 20% to 30% for bundling policies. If you already have an auto insurance provider that you trust, consider reaching out to them to discuss bundling options. It is worth paying a little extra to have the right agent who will stand by you in case of a claim.

When it comes to house insurance, it is essential to understand the different coverage types, factors that affect premiums, and the benefits of bundling policies. By doing your own research and considering these factors, you can make an informed decision and ensure that your house is adequately protected. Remember to review your coverage periodically to ensure it aligns with your needs as they evolve over time.

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