Average Home Insurance Rates

Average home insurance rates vary greatly throughout the country. In fact, they can even vary greatly from one part of the state to another or from one part of town to another. Home insurance rates are multi-faceted and therefore it is very difficult to make sweeping generalizations about where average home insurance rates are best or most competitive. The best way to understand average homeowners insurance rates is to understand what plays a part in determining them and how they affect what you ultimately pay for insurance.

Defining Average Rates

If you were to contact a variety of home insurance companies and give them the exact same information on insurance for the exact same home, chances are there would be as many different premiums as there are companies. That is because each insurance company, working within general guidelines, sets their own rates based on statistics, claims history, perceived risk and other factors. Insurers use many of the same factors in setting rates but weigh their importance differently.

When you are looking for information on average home insurance rates in a particular area, you need to set the parameters of your area. You can look at average rates for a street, town, county, state or by some other geographic area. You can also look at average home insurance rates for a particular size or age of home within a certain area or just in general.

Knowing these rates can be very helpful for someone who is planning to buy or build a home in a certain area. However just knowing the average is not enough. You definitely cannot build a budget or make a major decision based on the average rate unless you know what constitutes average. It certainly is not the youngest or oldest house in the area, nor the biggest or the smallest. Before using average home insurance rates in your decision-making, be sure that you understand what it is based on.

Factors To Determine Rates And Averages

By and large most companies use the same factors when determining home insurance rates. These factors include:

1. Age of the home

2. Type of home construction

3. Size of the home

4. Age and condition of the roof

5. Type of heating system used

6. Where the home is located

7. How close the nearest fire station is and where fire hydrants are located

8. Age of the homeowners

9. Lifestyle habits of the homeowners, like whether or not they smoke

10. If the home has been recently renovated

11. The homeowner’s credit score

12. Claims history

Each insurer will look at a unique combination of these factors and others to determine how much the home insurance rate should be. One company may weigh factors like whether or not the homeowners smoke very heavily while another company may not. Insurers even use such factors to determine whether or not they will insure a home at all. Many companies refuse to insure homes in certain geographic locations or of a certain age because the risk is simply too high.

Generalizations And Useful Tips

By understanding a little about homeowners insurance rates and how they work, a lot of information can be gleaned about average home insurance rates by studying the factors companies use in their decisions. Some useful information revealed to us is listed below.

1. Older homes are more expensive to insure than younger ones.

2. Homes made of brick or masonry are less expensive to insure than wooden frame structures.

3. Larger homes have higher insurance rates than smaller ones.

4. If the roof is in good shape or has recently been repaired or replaced, the insurance rate will be lower.

5. If your home is located in a small town with good fire protection nearby, your home insurance rates will be much better.

6. If your home is in a city with a high crime rate your rates will be high.

7. If your home is located in an isolated area far from fire stations and fire hydrants you will have a higher rate.

8. If all the inhabitants of the home are over a certain age, your rates will be lower.

9. If people who live in the home are smokers, their insurance rate will be higher than that of a non-smoking home.

10. If major renovations have recently been done to the home, insurance rates will drop.

11. Good credit scores indicate that you are less likely to make claims; therefore good credit means better rates.

12. If you have made a lot of claims in the past (especially claims that were not legitimate) then your rate will likely be higher.

The Impact Of Homeowners Insurance Discounts

In addition to each company setting their own rates, each has its own set of discounts that it offers for a variety of different things. It helps to further lower the premium you will be charged if you happen to do certain things or fall into certain categories which mean you are lower risk than others with the same rate as you. When you are shopping around for prices, be sure that you get all the discounts you can possibly get. Some of the ones that are most common include:

1. Multi-line discounts for having more than one type of insurance with the same company

2. Discounts for paying in full or for choosing certain types of payment plans

3. For being a member of certain groups and organizations

4. For having smoke detectors, fire alarms and sprinkler systems installed in your home

5. For having a centrally monitored security system

6. For having deadbolts installed on all doors and windows

7. For good maintenance of the exterior of the home

Once you understand the way average homeowners insurance rates work, the one way to find out what they truly mean for you is to get customized quotes on your own home insurance policy. The most efficient and effective way to get a variety of quotes to compare and contrast is to use an online quote tool like the one at the top of this page. To get started simply enter your zip code and answer the questions you will find there. In a short amount of time you will get a variety of quotes from top insurers serving your area.

Online quote results are perfect for comparing apples with apples, as you know that each company received the exact same information. You will no longer be making decisions based on abstract average home insurance rates, but on actual rates for your home or the home you are considering buying. With this kind of quote comparison you will also see the true impact of rate variations from one company to another.

Get your personalized online quote today and get a lot more than just average home insurance rates!