How Much Does Home Insurance Cost?


Homes come in all shapes and sizes, as do the price tags that come with them. With so many factors to consider, buying or selling a home can be stressful, especially if you aren’t sure what to expect from your insurance rates. Here’s an overview of how much does home insurance cost and how you can get affordable coverage that meets your needs. Let’s get started!

Use These 3 Calculators

One of the things you should consider when getting home insurance is that, beyond basic liability, most policies offer some kind of added coverage. Here are a few of them: Additional Living Expenses: This policy reimburses you for additional living expenses if your home becomes uninhabitable because of a covered loss. Determining what’s considered uninhabitable can be subjective, but it’s generally considered to be your home is unlivable for at least 30 days. Equipment Breakdown Coverage: This policy covers any appliances or mechanical systems in your home that break down and cause you to lose access to hot water, heating, or cooling.

Factors Affecting Your Home Insurance

A good rule of thumb is to try and estimate a range for how much your insurance will cost. To figure out how much you’ll pay, there are three main factors you need to know: Where you live: The rates on home insurance vary widely based on where you live, so if you have several options within your state consider which one makes the most sense financially. This also includes looking at what neighborhoods or areas might be less safe in general than others (the perception of crime can play a big part in home insurance costs). Your deductible: By choosing higher deductibles, your annual premiums could go down. Be aware that you’ll then be responsible for any large-scale losses such as burglary or damage by fire.

The Importance of Location

In theory, building codes exist to create safe, sustainable homes. In practice, they’re a set of restrictions that can make it hard for builders to produce things quickly and cheaply. As a general rule, home insurance cost is often inversely related to how quickly and easily a house can be built. Even if you don’t plan on doing it yourself—or even watching it being done—it’s important to learn about building codes and standards so you know what should be there before you move in and what is acceptable when you need repairs or remodeling. You’ll also have a better idea of how much these services will cost.

Building Codes and Standards

Although many people use home insurance and homeowner’s insurance interchangeably, they’re actually very different types of coverage. Home insurance protects your home from various risks such as fire or wind damage, but it doesn’t cover flooding, earthquakes, or other disasters that are covered by homeowner’s insurance. What does all of that mean for you? A great deal.

The Importance of Size

Home insurance costs are based on a variety of factors. One important factor is size: The bigger your home, or its square footage, and personal property, the more it will cost to insure. A $1 million house with 2,000-square-feet will cost more to insure than a $500,000 house with 1,500-square-feet. Make sure you know how much home insurance costs in your area; when comparing quotes make sure they’re consistent with what you can afford before signing on any dotted lines. Also, take note of coverage amounts; some home insurers base their policies on actual replacement value while others use depreciated or market value replacement cost. Always consult an expert if you have questions about how much home insurance costs or how coverage works.

What the Experts Say

The cost of home insurance will vary depending on a variety of factors, including location and your personal history. If you are purchasing a house, you’ll want to compare quotes from at least three different providers to make sure you get the best deal. What can help lower your insurance costs is if you take steps to keep your home safe from burglary and other risks—such as by adding deadbolts and smoke detectors or installing fire alarms. Paying for certain kinds of homeowners’ insurance may also entitle you to discounts on related products like renter’s insurance or auto insurance; shopping around can help ensure that you end up getting all available savings.

Tips for Saving Money on Home Insurance

There are a number of ways you can reduce your monthly home insurance premiums. First, you can increase your deductible—the amount of money that must be paid out-of-pocket before an insurance company will pay for damages or lost items. Increasing your deductible from $500 to $1,000 will drop your monthly premiums by hundreds of dollars every year, as long as there are no damages to cover. It’s important to note that you’ll need to spend more out-of-pocket if something does happen and you need to file a claim with your insurance company.


Whether you live in a home or an apartment, a policy for home insurance is an investment that is worthwhile. What’s more, it can be a relatively low-cost way to protect your most valuable asset—not just against damage, but also against unforeseen events like theft or serious illness. To figure out how much you might pay for insurance coverage, there are some things you need to consider first. Use our guide to help find out what kind of policy will work best for you.

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