Average Cost of Homeowners Insurance

The average cost of homeowners insurance varies by where you live, the condition of your home, and other factors. For example, if you live in a high-risk state, like Florida, which suffers hurricanes annually, you'll pay more for insurance. If your home is older, or in poor condition, you'll pay more, too. A lot of variables add up to create your insurance costs, but there are ways to save money, too.

Lower Your Average Insurance Cost

First, don't insure your home for the purchase price. That's not what it would cost to rebuild your home and replace your belongings in the event of a disaster. You don't have to include the cost of the land when you insure your home, but you do need to make sure you get insurance that will replace your home at replacement value, rather than actual cash value. Actual cash value policies are cheaper, but they replace your items based on what they are worth today, with depreciation, rather than what it would cost to replace them right now. With an actual cash value policy, you might not be able to afford to replace everything you own, which would be a financial crisis in the event of a major claim.

Ask your agent for discounts, and install safety features in your home, like security lights and burglar alarms. These all qualify for discounts, and they make your home safer, too. Keep your home well maintained, inside and out, to get better insurance rates. Monitor your home for safety issues, as well. If someone is injured on your property due to a safety issue, your rates could go up, and you could be liable for medical coverage, so keep your house spruced up as your yard maintained and clear of safety problems.

Keep Your Credit Score High for Low Insurance Rates

Believe it or not, a good credit score can help you score lower homeowner's insurance rates. Companies have found that people with higher credit scores tend to have fewer claims, so they reward you with lower rates. If you clean up your credit score and want lower insurance premiums, make sure you let your agent know, so they can adjust your policy. You should review your policy every year to make sure your coverage still represents the value of your home and possessions, and if you add to your personal belongings or update your home's security, you should let your agent know as soon as possible so you can lower the average cost of homeowners insurance.