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Home Insurance Prices
- The cost of home insurance depends on a number of variables. However, homeowners can expect to pay about $500-$1000 per year.
The cost of homeowner's insurance is configured based upon the following factors.
- Construction type: framed houses are more expensive than brick to insure because they are prone to greater fire damage. However, earthquake insurance is more expensive for brick homes.
- Age of the Home: Older homes are more expensive to insure, and some homeowners may have difficulty finding an insurer or have to settle for limited coverage. New home insurance is cheaper.
- Municipal resources: a highly ranked fire department and a home's proximity to a fire hydrant or other water source affect the home insurance rate.
- Amount of coverage: including total monetary value of the coverage, as well as whether or not personal belongings and personal property are included.
Each home insurance policy also varies on what it covers. Usually, though the following are included:
- Structural and personal property damage caused by: fire or lightning, wind or hail, explosions, rioting or civil disturbances, planes, vehicles, smoke, theft/vandalism, falling objects, ice, snow and sleet damage, frozen pipes, heating, A/C and similar home systems.
- Liability: in the case that somebody is injured on your property by your property or by anyone in your family.
- Flood and earthquake damage aren't always covered, and in that case will cost extra.
- Other things that may not be covered by a basic policy are: power failures (especially resulting in food spoilage), neglect, intentional loss, and war.
- If damaged property is being replaced and it is discovered that building codes now require more expensive materials to bring a home up to standard, the difference in price is paid by the homeowner.
- Most basic properties do not cover all personal items in your home. Certain luxury items such as family antiques or jewels may require additional coverage.
- Buying multiple policies from one company (say home and auto) may entitle you to a discount.
- Safety features such as an alarm system and dead bolts often result in a discount.
- Using fire resistant building materials makes your home less of a risk, and therefore cheaper to insure.
- Senior citizens or retired people may qualify for lower rates.
- Non-smokers could receive a discount because their home is at less risk of fire damage.