Lifestyle Moving Tips

A Guide to Home Owners Insurance and Why You Need It

Written by Abbey Shafer

Now that you’ve purchased your home you may be asking yourself how to keep it protected? Sure you already installed your home security, but what about damage done by an earthquake, or a house fire? Home owners insurance is one of the best ways to protect your home, and here’s why.

How To Lower Your Homeowners Insurance Premium

What Exactly is Home Owners Insurance?

Home owners insurance acts as property insurance that covers any loss or damage to the home including belongings and assets. This insurance also covers any damage done to the residence internally, externally or on the property. Home owners insurance differs from a home warranty.

How Much Will Home Owners Insurance Cost?

Similar to home security packages or cable packages, home owners insurance will vary in cost depending on the amount of coverage you are looking for. Bankrate has a great tool that you are able to view average annual premiums by state and how they vary to the National average (below).

State Average Annual Premium Percentage Difference from
National Average
Oklahoma $4,445 93%
Kansas $3,931 71%
Arkansas $3,439 49%
Florida $3,439 49%
Texas $3,429 49%
Mississippi $3,340 45%
Louisiana $3,270 42%
South Dakota $3,172 38%
Nebraska $3,133 36%
Missouri $3,111 35%
Colorado $3,082 34%
Minnesota $3,010 31%
Alabama $2,981 29%
Kentucky $2,862 24%
Montana $2,809 22%
Tennessee $2,692 17%
South Carolina $2,678 16%
North Dakota $2,601 13%
Georgia $2,555 11%
Iowa $2,540 10%
West Virginia $2,486 8%
Indiana $2,423 5%
New Mexico $2,299 0%
Illinois $2,201 -5%
Michigan $2,153 -7%
Rhode Island $2,125 -8%
Ohio $2,107 -9%
Wyoming $2,083 -10%
North Carolina $2,009 -13%
Arizona $1,976 -14%
Connecticut $1,961 -15%
Virginia $1,956 -15%
Massachusetts $1,920 -17%
Idaho $1,842 -20%
New York $1,840 -20%
Maine $1,833 -20%
Alaska $1,799 -22%
New Jersey $1,744 -24%
Wisconsin $1,732 -25%
Pennsylvania $1,720 -25%
Oregon $1,608 -30%
Delaware $1,521 -34%
Maryland $1,518 -34%
Washington $1,514 -34%
District of Columbia $1,488 -35%
Nevada $1,486 -36%
New Hampshire $1,455 -37%
Utah $1,378 -40%
Vermont $1,212 -47%
California $1,166 -49%
Hawaii $499 -78%

As a general rule of thumb, you should account for $35/month for every $100K your home is work. So, if you have purchased a $300K home, your monthly payment will be around $105/month. However, different policies will increase this monthly cost. These policies include,

1. Dwelling Insurance: the foundation of HOI coverage, dwelling insurance covers any damage done to the primary structure of your home, or any ‘attached structures’ (i.e your appliances. or your garage).   This also includes damage done by inclement weather, vandalism, natural disaster, etc.

2. Personal Property Insurance/Content Coverage: This covers items inside your home like clothing, furniture, or other material items. Insurance coverage for content that is damaged will likely come as a receipt for the expense of those items.

3. Personal Liability Insurance: This includes damage or harm done to you or your family, or if guests/neighbors are injured on your private property.

What Does Home Owners Insurance Cover?

Generally speaking, basic home owners insurance plans will cover,

  • Fire and smoke damage
  • Weather related damage (i.e snow, ice, wind, hail, etc.)
  • Internal water damage (i.e a pipe or sprinkler burst)
  • Burglary or theft of any personal property
  • Vandalism/riot damage or other civil disturbance
  • Explosions
  • Vehicle crashesWhat Does Homeowners Insurance Cover?

You may notice a few things mission from this list. Specialty HOI insurance will often needed to be added to your policy dependent on where you live & the risks associated. A few examples of this are,

  • Flood damage
  • Earthquake damage
  • Condo insurance/Co-Op living insurance (i.e if damage from your unit causes damage to your neighbors unit)
  • Renters insurance

Why Should I Have Home Owners Insurance?

1. Your Mortgage Lender will Require It: Although not a legal requirement, if you have any plans of financing your home, your lender will require proof of home owners insurance prior to distributing your loan.

2. Damage is Expensive: Damage to the exterior or interior of your home is expensive, as is damage to your personal belongings. Have ease of mind with your HOI policy.

3. Legal Protection: Most basic HOI policies will protect you in the event of a lawsuit if someone was injured on your personal property.

 

 

About the author

Abbey Shafer

Abbey Kebe is a marketing coordinator here at MoveEasy, who helps spread the word about MoveEasy's best in class moving concierges!

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