Many factors affect the cost of home premiums. Understanding them can help when choosing a policy fitting your budget.
The average homeowners insurance premium is about $1,200 per year. This amount changes greatly based on numerous factors, like property characteristics, location, deductible, policy coverage and more.
For example, you may have an older home, which can increase your monthly premium. Why? Older homes may be subject to more damages during perils due to the age of the materials used, wear and tear.
There are two primary ways to pay insurance premiums:
How you pay for your home determines whether you have to pay for homeowners insurance costs immediately after closing.
Typically, mortgage lenders usually require borrowers to pay insurance costs - which may be split - at closing through an escrow account. This amount is paid before and right at closing.
You can purchase a policy online or over the phone. You can also speak with a live representative at a local insurance office near you.
If you’re still unsure where to start searching for the right plan as a new homeowner, insurance premium information may be available from a connection in your real estate agent’s network.
Lana Harris is a Chicago native who is a second-generation real estate professional. She was introduced to real estate at a very young age while attending open houses with her mother who is a broker. She honed her skills assisting in property searches (back in the thick, Multiple Listing Service book days,) and using map reading skills to help plan property tour sequencing. Lana’s love of working with people and delivering strong customer service led her to the retail sector, where she developed her management skills at MC Sports, Ann Taylor, and Adidas. She and her husband moved to Utah in 2008 to enjoy the natural beauty of the mountains, and she began her real estate career here in 2015. Most recently, she was a VP of sales for a large team; she thrives on challenges and is determined to overcome obstacles to achieve results for her clients. Lana and her husband enjoy their three large dogs, skiing, camping and paddleboarding.
