How Much is Homeowner’s Insurance?

How Much is Homeowner’s Insurance?

Homeowner’s insurance is able to protect you if something happens to your house, and while it is very useful, some people are worried about the cost of this insurance. Unfortunately, the insurance can be rather high in some areas, while in others it is not all that expensive. This is because many factors go into these costs. This article will go through all the major factors so you know what to think about and consider with this insurance cost, and it will go through the average figures that most homeowners pay.

Dwelling Coverage

Perhaps one of the biggest factors in determining homeowner’s insurance costs is dwelling coverage. This is a figure that details how much money it would cost to repair the entire house if it were to collapse or otherwise be deemed unlivable. The formula for this is quite simple. Just multiply local building costs by your total square footage. Of course, building costs differ from contractor to contractor, but it should be easy to get an average if you contact several contractors about this issue.

Value of Home

While square footage is important and can be a determining factor of your home’s value, there are many other factors to consider. This includes the materials used to make your house, the amenities your house includes, such as a pool or other structures and the amount of rooms. Typically homes with a higher value cost more to insure, since they will cost more to rebuild if something happens.

Safety Features

Home safety features are able to decrease the amount you have to pay for homeowner’s insurance, because they help keep the house safe. The safer a house is, the less likely it is that the insurance company will have to pay for damage. Here are a few of the devices or factors that can help decrease insurance costs:

  • deadbolt locks
  • burglar alarms
  • close to a fire hydrant or fire department
  • fire alarms

When you talk with an insurance representative, make sure you ask about other devices or factors that can help lower your insurance costs. Not only do they make it easier to pay for insurance, but they keep you safer, too.

The material your house is made from is also important in determining safety. Brick houses fall apart less often than wooden houses, so they tend to cost less to insure. Age is also important, as newer homes are not as much of a risk as an older home.


The state you live in has a huge impact on insurance costs. Some states have very low insurance rates, because of property rates and the cost of local building, while others are very high due to high building costs and the chance of natural disasters. Among the most expensive states, such as Oklahoma, homeowner’s insurance can cost around $1,500. However, a similar policy in Virginia will cost under $600.

While the other factors definitely come into play, your location is one of the biggest factors used to determine insurance cost.

Insurance Score

Whenever you take out any type of insurance, underwriters often check your insurance score. This is a combination of your credit score and the number of claims you have filed in the past. People with good credit and few claims are privy to lower insurance rates, while people who have suffered problems such as fires and earthquakes will face higher insurance costs.


When you file for homeowner’s insurance, you are able to add an endorsement to certain valuable items. For example, if you have very expensive jewelry, that can be included in the insurance policy. While this protects the items, it also drives up the costs of insurance. This is parallel to the amount of items endorsed and their collective value.

Liability Limit

Each homeowner’s insurance policy comes with a liability limit, or the maximum amount of money that will be paid if something happens to the house. Most standard policies are for $100,000, but others can be for much higher. Depending on how much liability coverage you want, this will also increase the amount of homeowner’s insurance.

Average Amounts

While there are many factors to consider, which may push you above or below the average, the average amount of money that someone pays for homeowner’s insurance is between $700 and $800. This is common for a medium-sized home with $100,000 of coverage and one or two endorsements. While each state has its own average, this is the national average.


There are many things to think about when an insurance company gives you a homeowner’s insurance policy. They have to consider risks, as well as factors that decrease your insurance costs. Not only that, but each insurance company may have their own specific costs, which is something else to factor in. Be sure to get several quotes before settling down with one policy.

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