If you’re a first-time homebuyer working on a budget for your future plans, you might be wondering about homeowners insurance - how much will it cost, anyway? Unfortunately, the answer can get complicated, as it depends on several factors.
To help you budget for your first home, here is a quick guide to what goes in to determining the cost of your homeowners insurance:
Geographic location can have a major impact on your insurance coverage limits and premiums. This is because dwelling coverage limits are based on labor and replacement costs, which both vary significantly in different areas.
The hazard portion of your homeowners insurance policy can differ based on location, too. Hazard coverage protects you in case your home is damaged by fire, wind, falling objects and other events included on the list of “covered perils.”
Because natural disasters and weather-related hazards vary by region, so does the level of risk to the insurance company.
Some hazards, like tornadoes and earthquakes, require an additional insurance policy to cover. Additional insurance coverage will protect you from a wider variety of peril, but may cost more.
Homeowners insurance policies also include a personal property coverage component that includes your personal belongings separate from your home. Clothes, electronics, appliances and furniture are examples of property included in this coverage.
Consider the overall value of your personal property when deciding how much homeowners insurance coverage you need, as it will also affect how much you pay.
In the event your personal property is damaged or stolen, this part of your homeowners insurance can help you pay to repair or replace them.
Insurance can be complicated, and homeowners insurance policies are no exception. Until you get a quote from an insurance company, it may be difficult to budget for the expense. However, if you keep these variables in mind, you will have a greater understanding of what goes into your homeowners insurance policy cost.
I'm a veteran real estate agent with over 24 years of experience. Started my career in 1999, working for Century 21 American Dream in Hamden CT; assisting buyers and sellers, providing first time home buyer presentations for banks and non-profit organizations. By surpassing my sales goals, I received awards from the Regional Division of Century 21, for Outstanding Customer Service and the Multi-Million Dollar Award.
In 2005, I started McNeil Realty in New Haven CT, and later moved to Hamden CT; servicing New Haven, Middlesex, and Fairfield counties; providing home-buyers and sellers with professional, responsive and attentive real estate services. I'm a HUD Certified Broker, assisting buyers with foreclosed properties.
Please give me a call! I'm eager to assist and would love to talk to you. McNeil Realty is the Key to Opening Your Door! Stay safe!
