How much is homeowners insurance a month?

Question

My wife and I are pricing out home purchasing possibilities, and are looking at homes ranging from 290,000 up to about 360,000. We need to have a feel for the payments, and wonder if there is a quick formula to help us figure out the approximate insurance costs each month? Thanks!

Answer 1

There are many factors that play into a homeowners premium. Your market value, or what you're purchasing the home for, is not necessarily what it should be insured for. The amount of insurance would be based on a rebuilding cost using pricing factors in your area (contractor's rates, lumber, engineers, etc.). I would recommend finding a company that determines the accurate rebuilding cost on the home, and doesn't insure you for the market value as the market value is based on demand for the lot you're buying. The majority of your market value is the land, and if the home burns down... the land will still be there.
The premium will be based on the following:
Coverages (rebuilding cost, personal property, liability, and such).
Credit information, which is used to determine your "insurance score."
Any homeowner's claims you've filed within the past 3 years.
Your protection class information, which is based on the responding fire department, miles to station, feet to fire hydrant.
And most importantly-the particular loss history in the area you'll own the home. Some areas of the country has poor loss performance, and are subject to certain natural disasters which end up increasing everyone's premiums in that area.
The average homeowner policy runs around $500 per year, but I've written policies as low as $200 a year, and as high as $8,000 per year!

Answer 2

Nope, there are way too many variables, especially LOCATION. Even assuming your house needs to be insured for $300,000, depending on the location, construction, age of house, policy type, endorsements, and your credit rating, the premium could be anywhere from $900 a year to $6,000 a year.

You'll have to talk to your agent - who, btw, should be able to give you a ball park figure.

Answer 3

Depends on where you live. Based on what I pay, in my non coastal Texas town, you would pay about $4500 per year. How risky an area are you moving to? FYI, as we should all know by now, you still have to pay extra for flood insurance.

FYI, your RE agent should be able to ballpark a figure for you on taxes and insurance.

Answer 4

It varies greatly depending on location and what you cover. If you live on the Gulf Coast, you can expect a hurricane to destroy the house at some point. Rates will be higher to cover that risk. I live in Ohio. A tornado every 20 years or so is the biggest weather related risk here.

Answer 5

Usually it runs about a quarter of percentage point of the home's value per year. Maybe a bit more if you live in fire zones or opt for extras like earthquake coverage.

Answer 6

It depends on the cost of the house, where it's located, the coverage you want, etc. Estimate $50/month

Answer 7

I asked this same question several times, and haven't gotten a good answer

Answer 8

This is an interesting question, and one that confused me for a very long time.

Answer 9

I recommend that you visit this internet site where onel can compare rates from the best companies: http://INSURECOMPARECAR.INFO/index.html?src=1YA grwdwAX53

RE :How much is homeowners insurance a month?
My wife and I are pricing out home purchasing possibilities, and are looking at homes ranging from 290,000 up to about 360,000. We need to have a feel for the payments, and wonder if there is a quick formula to help us figure out the approximate insurance costs each month? Thanks!
Follow 9 answers

Answer 10

Great question