How much will home insurance cost me?
Buying a home is certainly no small purchase! But it is for this reason that getting home insurance is extra important—you want to make sure that your newest, potentially largest, asset is covered. It is worth paying the money via your deductible to get the liability coverage you need. A deductible is the out-of-pocket amount of money that you are responsible for toward an insured loss. An insured loss can happen via property damage from vandalism or natural disasters, theft (if you insured personal belongings ), or other unexpected circumstances. When an accident happens or disaster strikes, the deductible amount is subtracted from your total claim payment.
Average prices of homeowners insurance depend on a number of variables. Each insurer is different, but the cost will vary mainly based on your home, its location, and your financial history. See below for average annual premiums from some of the best home insurance companies in the United States. It is important to note that home insurance policies can be complex and need to be tailored to each individual and their circumstances and needs for liability coverage. So these numbers only serve as rough estimates. From highest to lowest, see below for each insurer and its average annual premium cost:
Farmers – $2,027
Liberty Mutual – $1,830
Nationwide – $1,737
USAA – $1,736
Travelers – $1,709
Allstate – $1,635
State Farm – $1,501
Amica – $1,128
Erie – $897
While the numbers may make purchasing a home insurance policy seem daunting, be sure to ask an insurance agent your options for payment plans. Typically, it can be deducted from your paycheck automatically in regular, monthly installments.
If you need more support, there are a number of homebuyer programs that exist to provide additional resources. The purpose of these programs is to help middle- and low-income Americans be able to purchase their first home and ultimately acquire a new asset. Some are sponsored by federal departments, like the U.S. Department of Housing and Urban Development. It is important to note that these programs do not serve as banks or traditional mortgage lenders, but they can still serve to benefit potential first-time homebuyers by providing them with other loans or grants. There are a variety of programs, and some may serve diverse groups, such as public-housing residents, Native Americans, veterans, and more. Be sure to check state-specific programs as well, as each location may offer a different set of programs.
Above all, always prioritize coverage over price. This may be a tough pill to swallow, but purchasing a home is not a small investment. It is a major financial decision and lifelong asset. Homeowners insurance is a necessity and relatively inexpensive to the overall cost of your home. Insurance policies serve to protect not only your home from damage but also you from paying any personal liability costs out of pocket. It may be tempting to cut out coverage to save money, but it is recommended to get the coverage you need for risky situations.