Beginner’s Guide to Home Insurance

Dealing with insurance companies can be so frustrating. There are so many details! It’s an overwhelming amount of information, especially when dealing with the process for the first time. It would be helpful if there was a flat rate or scale for how much homeowners’ insurance actually costs. The reality is: there are many factors that are considered when insurance companies decide your insurance costs.

Where do you even start?

Zillow says in very broad terms, homeowners should expect to pay about $35 per $100,000 of home value. In Texas, homeowners pay $2,355 a year for home insurance. However, there are a few factors that may raise or lower that price.

Age of the Home

Older homes are more susceptible to damage because of general wear and tear, and insurance companies know this! So new homes typically have better premiums!

Deductible

The higher you are willing to pay for your deductible, the lower the monthly cost, and the higher your insurance company will be willing to give when you need to file a claim. Because of this, you won’t be able to file a claim for smaller damages, but you will be better-taken care of for larger damages.

Distance from Emergency Services

Distance from fire hydrants or fire departments actually affect the premiums of a home. Rural homes further away from fire departments have higher insurance rates because they are likely to suffer more damage in the event of a fire.

Incentives

Insurance companies often reward loyal customers or customers who rarely need to file claims. Great credit scores can often be rewarded in your insurance costs. Homeowners that enhance the security by installing alarm systems will also be rewarded.

Most importantly, shop around! Too many new home buyers take the first deal instead of the best deal. You can save hundreds of dollars a year by taking a few extra steps when choosing your insurance provider.

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