There are many factors that determine how much is homeowners insurance that you should take. Some of the factors are the value of your property and the extent of coverage. A home insurance policy contains a combination of six coverage types. They include:
• Dwelling coverage to cover the home and other structures that are attached to it.
• Other structures coverage for covering detached structures such as a detached garage, fences and other structures not attached to the house.
• Personal possessions coverage for covering your personal items such as electronics and furniture.
• Loss of use coverage ensures that you are provided with living costs when your home becomes uninhabitable due to the occurrence of an insured peril.
• Personal liability provides cover for financial protection if you are held responsible for someone else injuries or damage of their property.
• Medical payments cover medical bills if anyone is injured when in your property.
The value of these types of coverage determines how much is homeowners insurance, with the major ones being the coverage for dwellings and personal possessions. You should make sure that your policy has enough cover for your home structures, personal possessions, living expenses and liability to others who are injured while on your property.
Cost of each type of coverage
The coverage for dwellings should be enough to provide for full replacement cost of the home. That is why it is important for the homeowner to know how much the rebuilding cost of the dwelling is so that it can be insured for accordingly. You should also review your policy at least every two years to ensure that your coverage could still cover home replacement. This is because changes such as inflation and cost of materials take place and they make the amount you have insured your dwellings for not to be enough. Personal possessions coverage should be at about 50 or 75 percent of the dwellings coverage. It is also important to take an inventory of your possessions to find out if the amount is enough. The insured amount should be able to replace your personal possessions in case a disaster occurs. To protect your personal liability in case someone is injured in your property or your dog bites a visitor, the coverage should be between $100,000 to $300,000. In case you think you might require more than that, you can purchase umbrella coverage policy to cater for additional liability.
How much is home owners insurance is not a fixed figure because it depends on different variables. From the provided statistics, the average annual premium is $978. However, each state has its own average with states that has high risk such as Florida having an average annual premium of $1933 and Idaho being the lowest with premiums at $518. If you want to know how much is home owners insurance for your case, you should consult with an insurance agent or company who will put all the factors into consideration to get the final cost.
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