A beginner's guide to homeowners insurance: How much will it cost?

by Patrick Garrett 03/19/2024

If you’re a first-time homebuyer working on a budget for your future plans, you might be wondering about homeowners insurance - how much will it cost, anyway? Unfortunately, the answer can get complicated, as it depends on several factors.

To help you budget for your first home, here is a quick guide to what goes in to determining the cost of your homeowners insurance:

Your home’s location

Geographic location can have a major impact on your insurance coverage limits and premiums. This is because dwelling coverage limits are based on labor and replacement costs, which both vary significantly in different areas.

The hazard portion of your homeowners insurance policy can differ based on location, too. Hazard coverage protects you in case your home is damaged by fire, wind, falling objects and other events included on the list of “covered perils.”

Because natural disasters and weather-related hazards vary by region, so does the level of risk to the insurance company.

Some hazards, like tornadoes and earthquakes, require an additional insurance policy to cover. Additional insurance coverage will protect you from a wider variety of peril, but may cost more.

The overall value of your home and belongings

Homeowners insurance policies also include a personal property coverage component that includes your personal belongings separate from your home. Clothes, electronics, appliances and furniture are examples of property included in this coverage.

Consider the overall value of your personal property when deciding how much homeowners insurance coverage you need, as it will also affect how much you pay.

In the event your personal property is damaged or stolen, this part of your homeowners insurance can help you pay to repair or replace them.

Insurance can be complicated, and homeowners insurance policies are no exception. Until you get a quote from an insurance company, it may be difficult to budget for the expense. However, if you keep these variables in mind, you will have a greater understanding of what goes into your homeowners insurance policy cost.

About the Author
Author

Patrick Garrett

Hi, I'm Patrick Garrett and I'd love to assist you. I'm an experienced Real Estate Broker with Provident Real Estate LLC in Oklahoma City, OK and the nearby area, providing homebuyers and sellers with professional, responsive, and attentive real estate services. 

I specialize in all aspects of residential real estate from Listing your Home for Sale, to Home Buyer Representation, Investing or Property Management. I leverage Technology to make sure you received the best possible price & opportunity to Buy or Sell your Home. 

Provident’s Investor Services & Property Management are leading the industry by utilizing state of the art property acquisition & management software to ensure a maximum ROI along with Portfolio transparency. 

So, if you want an agent who'll really listen to what you want in a home or an agent who knows how to effectively market your home so it sells, Give me a call! I'm eager to help and would love to visit with you about your unique Real Estate needs.