How much is home insurance?

Rija24 · September 22, 2020, 1:14pm

How much is home insurance?

The amount of home insurance may vary from state to state or the policy that you have adopted but typically, on an average it is $1200.

State	AVERAGE	STATE	AVERAGE
Alabama	$1,433	Montana	$1,174
Alaska	$959	Nebraska	$1,481
Arizona	$825	Nevada	$755
Arkansas	$1,373	New Hampshire	$972
California	$1,008	New Jersey	$1,192
Colorado	$1,495	New Mexico	$1,017
Connecticut	$1,479	New York	$1,309
Delaware	$833	North Carolina	$1,086
District of Columbia	$1,235	North Dakota	$1,253
Florida	$1,951	Ohio	$862
Georgia	$1,267	Oklahoma	$1,885
Hawaii	$1,102	Oregon	$677
Idaho	$730	Pennsylvania	$931
Illinois	$1,056	Rhode Island	$1,551
Indiana	$1,000	South Carolina	$1,269
Iowa	$964	South Dakota	$1,202
Kansas	$1,584	Tennessee	$1,196
Kentucky	$1,109	Texas	$1,893
Louisiana	$1,968	Utah	$692
Maine	$882	Vermont	$918
Maryland	$1,037	Virginia	$999
Massachusetts	$1,488	Washington	$854
Michigan	$942	West Virginia	$940
Minnesota	$1,348	Wisconsin	$779
Mississippi	$1,537	Wyoming	$1,156
Missouri	$1,285

What does Homeowners insurance cover?

The covering of homeowners insurance depends upon the policy that you have adopted. It can vary from one state to another. There are certain points that the policy makers and you can claim about it. However, if it is not mentioned in the list of events such as the insurance doesn’t provide any surety for the natural disasters, then you cannot claim any help from the insurance policy. Homeowners insurance covers the following damages:

Any damage caused by the accident occurred due to a vehicle such as an air-craft.
A sudden havoc that might occur.
In case there is any occurrence of fire due to any reason or the high smoke appears suddenly.
Any sort of explosions that may happen as an incident such as due to the gas leak or the electrical faults.
In case your personal property gets stolen and there are many expensive things included in it.
If there as a political unrest in the country and the people damage the property as a part of protesting.
The damages caused by flood are not a part of homeowners insurance but if there is any other type of water leak such as through pipes then it will be included in the insurance.
Any damage that is related to the weather such as a heavy rainfall or a heavy hailstorm.
Sometimes the roof of the house may collapse or get broken due to excessive snow and when it melts, it might start leaking too. So such damage is also a part of your insurance.

What homeowners insurance doesn’t cover?

As you have already gone through the things that homeowners insurance will cover, let’s take a look at the things that you have to deal on your own or provide an extra amount of money if you want them to be included in the insurance policy.

It excludes the damage that results due to the natural disasters such as flood, earthquakes, land sliding or the volcanic eruptions. Therefore, if you live in an area where any of these natural disasters often occur, then it is advisable to include the insurance for them too.
Some of the policies also ignore the damages caused by water pipes or the sewage systems. Even if they have it, some of them limit the number of visits for such damages.
If you have been neglecting your damages for a long time for example you roof has been damaged and you ignored it for 20 years and it got even worse, then the policy makers may also reject your claim.
Similarly, if a home is completely destroyed due to any reason, then they will pay you a specific amount and not more than that.

Types of homeowner’s insurance policy:

It’s not always that the policy will cover all the factors. It depends upon you that which policy do you choose and the coverage will be according to it. For this purpose, there are several types of homeowner’s insurance policy and they range from HO-1 to HO-8.

HO-1 policy: It is a basic kind of policy that is offered for the small families. However it is non-existent now as it is not frequently used. For example, damage caused by the ice is not covered by it

HO-2 policy: It covers a slightly more things than the HO-1 but doesn’t cover wide range of the factors.

HO-3 policy: it’s the most common type of insurance policy, covering 16 perils.

HO-4 policy: This policy is specially designed for the renters. It helps to recover the damage to the renter’s property.

HO-5 policy: It is the most comprehensive policy designed for the use of the single families and covers a lot of the things.

HO-6 policy: The HO-6 policy is designed for the people who own the condos. A condo is a short form for condominium, which is the building containing a lot of small apartments. So basically it has been made for the apartment owners and renters.

HO-7 policy: It covers the protection of physical as well as the personal property of the owners. It has been designed for the manufactured or mobile homes. The mobile homes are the ones that are manufactured before head and then are transported into the desired locations.

HO-8 policy: It has been designed for the old homes that are in a bad condition. Usually the owner has to pay for the items that will be used for the recovery or maintenance.

The Levels of coverage:

There are 3 different levels of coverage for the homeowners insurance:

1). The Actual Cash Value:

It covers the expenses of the house as well as that of the personal belongings however, excluding the cost of depreciation (the worth of the things).

2). The Replacement Cost:

Homeowners insurance policy will allow you to have the payment for the repairing of the house materials and in this level, the amount of deduction of depreciation will not be present.

3). The Guaranteed or Extended Value or Cost:

This is the most effective homeowner’s policy as it will help you to get repaired whatever damage has been caused. It is an expensive policy but it’s worth it also. It helps to overcome the damage even if it’s greater than how much you have paid for the policy. On a typical average, it can provide you a benefit of 20% to 25%.

How much is home insurance?