What Are the Factors that Affect Your Home Insurance Cost?

A recent study showed that obtaining a house is a priority among American families. Homeownership is an essential piece of realizing the American dream. It is one of the things Americans want to have before they retire.  

But house ownership also comes with responsibility. Your home is keeping you and your family safe and warm. It is a necessity to get home insurance to protect your property from perils. Home insurance provides financial protection for your house and your personal belongings against the wind, fire, hail, and other covered perils.
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There is no standard home insurance cost. The cost differs from one state to another. To give you an idea of the amount, the average annual home insurance cost across the United States is about $1,192. Therefore, it is essential to discuss the factors that can affect your home insurance cost.

Size of the House
Insurance providers are considering several factors determining the amount that you will be paying for your home insurance. One of these factors is the size of your house. The bigger the house, the higher the premium you need to pay. 
Someone who owns a 2,000 square foot house will have a lower home insurance cost than a person living in a 6,000 square foot house. The reason is quite simple. A 6,000 square foot house will cost more to rebuild than a 2,000 square foot house. Hence, insurance companies will charge more premiums as your home gets bigger.

Location
Your residence's location plays a significant role in assessing the amount of home insurance you need to pay. Home insurance costs vary from one state to another. There are states wherein the home insurance premium is higher than the national average of $1,192, while some states charged less than that amount.

Louisiana, so far, has charged the highest home insurance premium across the country. The average annual premium in that state is $1,967. It is 65% higher than the $1,192 national average. After Louisiana, Texas and Florida have the second-highest home insurance cost per year with $1,937 and $1,918, respectively. Home insurance in these states is more expensive than the national average because they sit along the storms' usual path.

On the other hand, Oregon and Utah have the lowest home insurance premium at $659 and $664 per year, respectively. Oregon's home insurance cost is 45% lower than the national average, while Utah's home insurance premium is 44% lower than the national average. The cheaper home insurance cost in these states is since both states are less vulnerable to storms and tornadoes.

Conclusion
Getting your own home is quite expensive. But it is more costly if you left your home unprotected from perils that might damage it in the future. Storms and other disasters are natural forces that you cannot prevent. However, as a homeowner, you can get financial protection from these perils through home insurance.

At Hayek Insurance, we put our clients first by offering them policies that they can afford. Having insurance is a necessity nowadays, and we're here to help you out. Learn more about our products and services by calling our agency at (805) 496-8835. You can also request a free quote by CLICKING HERE.