The true cost of homeowners insurance | Property Claim Tips, LLC

A recent article by J.D. Power and Associates reported that one in five homeowners don?t have enough homeowners insurance coverage to protect their property in the event of a total loss. One reason for this may be that homeowners are making updates to their home and not making the necessary adjustments to their homeowners policy. Another reason may be that homeowners are skimping on coverage in order to save some money. It makes many ask the question- what does home insurance really cost?

When taking into consideration the cost of having homeowner insurance, you really need to ?consider the cost of NOT having homeowner insurance as well. Here, we will weigh both.

The cost of a homeowners insurance policy: A lot of factors go into determining what a particular homeowner will pay for a home insurance policy these days. A few of these include:

• The replacement cost of the home (square footage multiplied by local construction costs)
• Average rates in that state as determined by the state department of insurance
• The amount of additional coverage needed (liability, endorsements for jewelry, etc.)
• The types of discounts that a particular policyholder may qualify for

These are just a few of the elements of a policy that will affect how much an individual homeowner will pay for home insurance. In a recent release of our monthly RateReport, we found that homeowners were paying $730/year on average ?in May 2011. While this may not be typical of all homeowner policies, it does give us a good benchmark.

And while some will be paying around $730/year for their home insurance, others will be paying considerably more or less. For example, in May 2011 in Idaho, HomeInsurance.com customers were paying an average of $369/year. On the other hand, homeowners in Louisiana were paying an average of $1543/year during the same time period. As you can see, the specific U.S. region that your home is located in can greatly affect what you pay for insurance.

In addition to geographic rate trends, additionally purchased coverage can also affect your premium. For example, flood insurance is required by most lenders on homes that are located within a high-risk ?flood zone. Flood coverage is not included in a standard homeowners insurance policy and an additional policy must be purchased to cover a home for flood damage. According to the National Flood Insurance Program (NFIP) website FloodSmart.gov, the cost for a flood policy can range anywhere from a few hundred dollars to a few thousand dollars a year depending on the flood zone and replacement cost of the house.

Homeowners may also add additional coverage to their standard home insurance policy which can increase their premium. For example, some homeowners schedule?endorsements?on an existing policy increasing their coverage limits on specific items like jewelry. In addition, some homeowners may purchase additional liability coverage (aka an umbrella policy) to protect them financially in the event of a lawsuit.

So is there an easy answer to how much home insurance costs? Not really, because it all depends on the property being insured, the needs of the policy holder, and the region where the property resides.

However, as a baseline figure, we can estimate that homeowners across the U.S. are paying roughly $730 on average for standard homeowners insurance coverage each year.

The cost of not having home insurance: As mentioned earlier in the article, it is only fair when weighing the cost of home insurance to also consider the cost of NOT having homeowners insurance. In the Insurance Information Institute?s report on homeowners insurance data for 2008, it is stated that in the six year period between 2005 and 2009 5.7 percent of insured homes experienced a claim. It also shows that the average claim cost ranged from $1,940 to $27,691 with the average claim being around $7,876.

Without homeowners insurance, you are responsible for paying for all damages to your home caused by fire, lightning, wind, hail and theft. Keep in mind that disasters can strike at any time and without any warning.

In order to be properly insured at all times, ask a licensed insurance agent to review your needs as a policyholder and be sure your policy best protects you. If you are looking to save money on your homeowners?insurance, don?t skimp on coverage. Instead,when shopping for home insurance quotes, ?talk to your insurance agent about qualifying for discounts such as home-auto packages and security system discounts which can save you up to 20% or more.

?

?

Source: http://www.propertyclaimtips.com/the-true-cost-of-homeowners-insurance.html

bf3 craigslist nc chronicle baked alaska baked alaska battlefield 3 release battlefield 3 release