Tips for Estimating the Cost of Homeowner’s Insurance

Buying a house is exciting, but each home purchase also brings its lot of stressful questions. As some people find out, sometimes unexpectedly, homeownership costs can be challenging to navigate. Homeowners insurance, not to be confused with home warranty, is one of these expenses that can come as a surprise.

What is Homeowners Insurance?

Homeowners insurance protects you in case of damage to your house or your possessions. It also protects the homeowners' liability if someone were to get hurt while on your property. Lenders may require it to qualify for some mortgages.

Steps to Estimating Homeowners Insurance

Estimating how much you will need to pay for homeowners insurance is not an easy task. Many factors need to be taken into consideration, including the home values, credit history, location of the properties, any discount the applicants may qualify for, and so on. Here are some tips to help you figure out the cost of your homeowners insurance.

Before reading on, check out our guide on the essential mortgage terms you should know if you are new to home insurance, warranties, and mortgages.

Know the Average Insurance Cost in Your Area

The location of the property is a determining factor of the homeowners insurance cost. It varies by region and is influenced by multiple factors. Weather patterns and their possible trail of destruction play a significant role in determining how much you will end up paying for home insurance. Before buying a house, ask yourself if storms and hurricanes are frequent in the area, for example? What about floods, wildfires, earthquakes, tornadoes, etc.? As can be expected, Florida, Louisiana and Oklahoma are among the states where homeowners are the most likely to pay a higher homeowners insurance premium due to the temperamental climate and the potential for destruction in the local communities.

Insurance companies also keep track of how frequent claims are. Weather-related applications are the most common. However, social risk, as calculated based on crime rates and consumer protection laws, also ends up influencing the home insurance premiums since homeowners insurance typically covers the owner in case of damages caused by theft and vandalism.

If you’re interested in buying a new home then see our list of questions to ask when buying a home.

Shop around With Various Service Providers

Given the variety of factors to take into consideration when it comes to homeownership costs, the best way to ensure the most advantageous rates for homeowners insurance is to shop around with several providers. Each one has its criteria and restrictions: for example, they may not insure condominiums. Some insurance providers may be able to offer more advantageous rates than others. Ask about available discounts: some companies may offer lower rates if you undertake some safety-related modifications such as installing additional fire prevention or home security technology devices. Others may also offer lower rates depending on your demographic (if you are a couple, do not smoke, or are a first-time homebuyer, for example.) Finally, insurance companies are more likely to offer advantageous rates to customers willing to bundle their different insurances together, including auto and life insurance.

Consider Your Homebuilder’s Offering

New home builders like Pulte sometimes offer homeowners insurance as part of their services. Although it may seem something of an atypical route, there are many reasons why the insurance proposed by your builder could be the best for you.

Benefits of Pulte Homeowners Insurance

Familiarity with the products

Pulte Homeowners Insurance is familiar with all the products and communities of the PulteGroup brand, including Pulte, Del Webb, Centex, Divosta, and John Wieland. Therefore, they can find the most advantageous offers available rapidly and ensure a smooth process.

Dedicated team

When it comes to insurance, a timely answer is essential – which is why Pulte Insurance has a dedicated team available to discuss your coverage and provide a quote rapidly.

Although figuring out the cost of your homeowners insurance can be difficult, it is an important part of understanding how much home you can afford. Ready to buy your new home? The experts at Pulte Home are here to help make homebuying simpler with our team of helpful associates.

Contributed to Your Home blog by Alix Barnaud

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Published 9.21.2020