How Much Does Homeowners’ Insurance Cost?
Insurance can be costly, but it is often a cost you do not want to go without. This is especially true for homeowners’ insurance, which provides coverage for various dangers your home may face, such as floods, fires, wind, hail, theft, and falling items.
Construction is pricey, and having to replace any damage to your home may not be something you can afford. That is where insurance can help.
For a policy with a $300,000 dwelling limit, the national average cost is $2,285, which is less than $200 a month. In Michigan, this number is $1,873 per year, which is below the national average. This is great news for residents of The Great Lakes state, but the amount you pay can vary based on various factors. Factors such as where you live, how old your home is, your deductible, policy limits, and square footage are all things that are considered. Your credit score may also be a factor, as homeowners with poor credit histories pay 92% more for home insurance than those with excellent credit.
Home insurance costs will not be dropping anytime soon, though. The cost of home insurance is constantly increasing due to the impact inflation has had on the previous losses experienced by insurance companies. Plus, the increased cost of building materials and the high likelihood of future weather-related losses have caused home insurance premiums to rise.
Estimating the Cost for Your Home
The goal of home insurance is to restore your home and property to the way it was before the loss. The best way to estimate your home insurance cost is by doing the following:
- Evaluate your home’s replacement cost. This is the amount it would take to rebuild your home from scratch using similar materials, not the market value. You can use a cost-per-square-foot method or use an insurance company’s calculator.
- Consider the coverage types you need. Dwelling coverage covers rebuilding or repairing the home, while personal property covers the cost of replacing belongings, such as furniture and electronics. There is also liability coverage, which protects against lawsuits for injuries on your property.
- Account for factors that affect cost. Location is a top factor, as areas prone to natural disasters like floods, wildfires, or hurricanes will increase premiums. So is home age and construction, as older homes or those made with costly materials will cost more. Also, a new roof can reduce your premium.
- Use online insurance calculators. Many insurance companies offer free online tools to get an estimate. Simply input your home details, location, and desired coverage.
Contact Our Michigan Home Insurance Agency Today
Homeowners insurance can be expensive, but you do not want to go without it. You want your home to be protected in the event of theft or a weather event.
See how an insurance agent from Hartman Insurance Agency can get you the best deal on insurance for your home. We will go above and beyond to ensure you have the coverage you need. Contact us today by calling (734) 999-4190 or filling out the online form.