Buying a home is an investment you want to protect.Therefore, purchasing home insurance is a given to any new home buyer and is prerequisite to getting a mortgage. But what many home buyers—new and old—don’t know is how much home insurance costs a year and what key factors play a role in determining it.
According to the Federal Reserve Bureau, the average cost of an annual premium for home insurance is between$300 and $1,000. However, home insurance cost can vary based on:
Location: Your home’s location affects which types of disasters are covered on your home insurance policy. In Massachusetts, these can range from wild fires to flash floods. Depending on where you choose to live, it may be important to consider adding further coverage to your basic policy.
Size: The bigger the home, the more materials needed to repair any damage and the more potential claims. This adds to the cost of home insurance.
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Age: If you livein an older home, your utilities likely are going to be older, as well. These can lead to more home insurance claims.
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Multi-family homes:The more separate families that live under one big roof means an increased possibility for claims. As a result, these home insurance policies are more expensive than policies for single-family homes.
It also is important to make note of the type of personal property you have within your home. If you own more valuable items, they will add to the cost of your home insurance policy. Additionally, consider bundling types of insurance together for a more economical rate.
Vargas &Vargas Insurance has been helping Massachusetts’ families get the right coverage they deserve at an affordable price for years. If you have any questions regarding home,auto,life insurance policies and more, call and speak with one of their agents today at 877-550-0025.
