What Is the Average Cost of Homeowners Insurance?

Nationwide, the average cost of homeowner’s insurance is around $1,083 per year or about $3.50 for every $1,000 of your home’s value. However, this average for home insurance costs means actual premiums will be higher and lower, depending on many factors. For example, one factor that influences home insurance costs is your home’s location.

The top five most expensive states for home insurance costs in 2015 were Florida, Texas, Louisiana, Oklahoma, and Kansas. The obvious reason is that homes in these states are at risk from tropical storms, hurricanes, and tornadoes. The five least expensive states were Wisconsin, Nevada, Idaho, Utah, and Oregon.

Average Home Insurance Costs

Two other important factors influencing your home insurance costs are what kind and how much coverage you are seeking. There are generally four types of coverage included in a standard home insurance policy: dwelling, personal property, liability, and loss of use.

Dwelling Coverage

Dwelling coverage is typically the most expensive part of a home insurance policy. This is the part that pays for the rebuilding or the repair of your home and any attached structures that might be damaged by a covered hazard such as fire/smoke, windstorms, vandalism, or theft. Most homeowner insurance policies will cover these (and other) hazards but the coverage can vary depending on the geographical region, the state, and often the county within a state. Be sure to ask your AbsoluteChoice insurance agent about coverage for any unattached structure such as a garage, fence, or shed.

Personal Property Coverage

Personal property covers your belongings such as your clothes, furniture, collectibles, and jewelry. Most policies have an option for covering your personal property with what’s known as actual cash value (also known as fair market value) or replacement cost coverage. Most home insurance policies will set limits on high-value items such as jewelry, furs, and original artwork. Be sure to ask your AbsoluteChoice agent about coverage limits and other options for personal property.

Liability Coverage

Liability coverage helps you pay for legal or medical expenses if you or someone else suffers property damage or bodily injury. For example, a limb from a tree in your yard might fall and damage your neighbor’s lawn furniture. Or, someone might fall down your entryway steps, slip in your garage, or get bitten by your dog. Your AbsoluteChoice agent can help you determine appropriate liability coverage limits for you considering your personal assets and budget.

Loss of Use Coverage

Loss of use coverage is the part of a home insurance policy that reimburses homeowners for expenses they would need to pay if their home was damaged because of a covered loss. Typical expenses might include the cost of a hotel because all or part of your home is uninhabitable, or extra expenses to travel back and forth to work. Loss of rental income is also included under loss of use coverage.

As with other factors of home insurance costs, there are limits to the amount of loss of use coverage available, and it’s usually limited to a percentage of your dwelling coverage. So again, your AbsoluteChoice agent can help you determine appropriate coverage limits for you.

Contact AbsoluteChoice Today For A Fast, Accurate Quote

For a fast, accurate home insurance quote with the best coverage for you, call us at 407-344-4444 or stop by AbsoluteChoice.com today and fill out our contact form. Ask us how much money we can save you by bundling your home and auto insurance policies. We can also help you determine if you qualify for additional discounts because of home alarm system installations, or if you will need any special insurance add-ons. You can also use our contact form to get a fast, accurate quote for your condo, rental property or renter’s insurance.

AbsoluteChoice.com also offers commercial and auto insurance.


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