Insurance Coverage Based On Your Needs

Homeowners insurance is determined based on the amount of money it requires to rebuild a home; that requires a knowledgeable expert to give the right estimate. Robert Large, vice president of Pacific Specialty Insurance Co., said that most homeowners give attention to auto insurance rather than homeowners insurance. He continued by saying that one of the reasons for this is that auto insurance providers receive more TV advertisements.

Additionally, there is more attention paid to it because most people spend more on car insurance. Few people realize that losing a car will cause pain, but they will not feel nearly as financially devastated as if their home gets destroyed.

Currently, the national average for the cost of a home insurance policy is around $804 annually. The figure is based on HO-3 insurance policies for owner-occupied dwellings. HO-3 has become the most popular type of home insurance because it protects against 17 of the most common types of hazards. These hazards include: Theft, fire, wind damage, hail damage, ice, burst pipes and vandalism. The average cost of insurance will differ from state to state, but Florida has the highest premiums with homeowners paying approximately $1,933 annually. This is due to homes being at high risk to hurricanes. Price depends on the level of risk. In the state of Georgia, insurance costs around $906 annually.

The price of premiums depend on the level of risk for the location. ISO, Insurance Services Office, says that 98 percent of homeowners insurance claims have their basis on property damage. Other factors that your insurance will depend upon include: Deductibles, insurance score, credit score, county and the number of claims you made in the past. Additionally, sometimes you can get a discount if your home is next to a fire hydrant. The higher the risk, the more that you pay for insurance.