Figuring out the average cost of home insurance

by Judy and Bob Holder 10/28/2024

If you’re budgeting for a new home, it’s important to incorporate the average cost of home insurance. Insurance rates are composed of many factors, and knowing these factors can help you estimate the potential expense.

Here is a quick guide to the variables determining the average cost of homeowners insurance:

Home location & age

Homeowners insurance cost is partially determined by certain aspects of the home itself. The biggest factors include location, age and condition. If your home is located in an area prone to extreme weather or other potentially damaging conditions, it’s considered a higher risk to the insurer and may incur a higher premium.

Older homes are more likely to need repairs, and those repairs can cost more. Similarly, if your home’s condition is less than ideal, your insurance premium may be higher as a result.

Coverage details

There are several variables in your policy that go into the average homeowners insurance cost. The most important variables are:

Deductible amount - Deductible amount affects how much you pay monthly and how much you may need to pay out of pocket for a claim. A higher deductible means a lower premium cost, but a higher out-of-pocket cost if you need to file a claim.
Dwelling coverage amount - The portion of your policy that protects the physical structure of your home can vary based on size, condition and age of your home.
Personal property coverage amount - Also included in your average insurance cost is protection for the value of your personal belongings, such as clothing, furniture and appliances.

Other factors

There may be other factors that impact the cost of homeowners insurance. Some of these are related to your home and lifestyle, like whether you have a pool, trampoline or aggressive pets. Others might concern your financial history, including credit score and past insurance coverage.

If you want more details about what goes into the average cost of home insurance, consult your insurance provider.

Personal Property Coverage

About the Author

Judy and Bob Holder

Holder Home Team

I am licensed in both Massachusetts & New Hampshire and Judy takes care of the creative part of things and together we are experts in this local area, we bring a wealth of knowledge and expertise about buying and selling real estate here. It's not the same everywhere, so you need someone you can trust for up-to-date information. We are eager to serve you. Here are some of the things we can do for you:

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