Estimate your 2023 premium costs – Forbes Advisor

Forbes Advisor’s home insurance calculator is a quick and easy way to get an estimate of home insurance costs. Start by answering a few quick questions.

Home insurance calculator

How to estimate home insurance costs

Home insurance costs are easy to estimate if you know how much homeowners need. Here’s how to determine the best home insurance rate for your situation.

1. Housing cover (the cost of rebuilding your home)

Residential coverage is the basis of home insurance. Homeowner’s insurance pays to rebuild or repair your home due to a problem covered by your homeowners insurance policy, such as a fire or hurricane.

Your home insurance company can provide an estimate of the cost of rebuilding your home.

Other home insurance coverage related to your home coverage includes:

• Covering other structures It pays to repair or replace structures not attached to your home (like a shed or fence) if they are damaged by a problem covered by your policy (like a hurricane). The amount of “Other Structures Coverage” usually defaults to 10% of your home insurance limit.
• Additional living expenses coverage It pays you for extra expenses (like hotel bills and meals) if you’re unable to stay at home due to a peril covered by your policy (like a fire). Additional living expenses cover is usually set at 20% of your home cover limit.

2. Personal property coverage (value of your belongings)

Personal property coverage pays to repair or replace your belongings, such as furniture, appliances, clothing and other household items, if they are damaged by a problem covered by your policy, such as a fire.

Personal property coverage is generally set at 50% to 70% of your residential limit. That means if your homestead coverage is $500,000 and your personal property coverage is 50%, your personal property limit will be $250,000. You can pay to add coverage to your personal property. Finishing the furniture will help you determine your coverage needs.

3. Homeowners Liability Insurance

Liability insurance in a homeowners policy pays for accidental injuries and property damage to others. For example, if your dog bites someone, your liability insurance may cover medical expenses. Liability insurance will cover your legal expenses if you are sued in the accident.

A general rule of thumb is to purchase enough liability insurance to cover what could be taken from you in a lawsuit. This protects the assets you may lose if you are sued.

4. Select your home insurance deductible

The insurance deductible is the amount deducted from the claim cheque. For example, if you choose a $1,000 deductible and have a $5,000 kitchen fire repair, your home insurance premium will be $4,000. Common deductible amounts range from $500 to $2,000.

Home insurance deductibles apply to your structure and personal property coverage, not liability insurance coverage. Deductibles are usually flat dollar, but there are exceptions, including hurricane deductibles and hail and wind damage deductibles.

What Factors Affect Home Insurance Estimates?

Here are the main factors in home insurance costs.

Area

Your zip code is a major factor in home insurance considerations because it reflects the risk factors like weather and crime in the area where you live.

Insurance companies look at your proximity to emergency services such as a fire station.

The cost of rebuilding your home

The cost of rebuilding your home will determine how much residential coverage you should purchase. The higher the cost to rebuild, the higher the residential limits you want. Also, the materials your house is built from, such as brick, stucco, wood or stone. Some materials can make your home more or less dangerous to insure.

Past claim history

Your past claims history shows that you tend to make more claims, which puts you at greater risk for insurance. Also, your property’s claim history is often reviewed. That points to issues with previous homeowners that may affect you as well.

How much coverage you choose

The higher the limit you choose for your home, the higher the potential payout from the home insurance company. But don’t skimp on the cover. You don’t want to be uninsured and unable to rebuild your home and replace your belongings after a disaster.

Your credit

Homeowners insurance companies use credit-based insurance scores when calculating rates—except in California, Maryland, and Massachusetts.

Using one’s credit to calculate insurance premiums is controversial, but homeowners insurance companies point to a Federal Trade Commission study that links credit scores to the likelihood of an insurance claim. The report found that people with lower credit scores are more likely to file more claims and/or claim higher fees. Because of this higher risk, people with poor credit pay higher home insurance premiums.

What is the average cost of homeownership?

According to our analysis, the national average cost of homeowners insurance is $1,582. That home insurance estimate is $350,000 for home coverage, $175,000 for personal property coverage and $100,000 for liability coverage.

Prices vary greatly from one home insurance company to another, so be sure to shop around with several companies when looking for an affordable home insurance quote.

Average cost of homeowners insurance by state

Where you live plays a big role in how much you pay for home insurance. Here are the average home insurance costs by state.

Average home owners insurance cost per company

The cheapest home insurance cost estimate from Progressive is $746 a year, based on an analysis of national costs among major insurers by Forbes Consulting.

What information do I need to get a quote?

If you have the following information at hand when comparing home insurance quotes, it should be an easy process.

• Home address
• Property type (single-family, duplex, etc.)
• Use of property (main residence, vacation home or rental)
• The year the house was built
• Number of stories
• The style of the house
• Square footage of the living area
• Number of bedrooms and bathrooms
• If you have a garage (attached or detached)
• Detached structures such as fences
• The type and age of the roof
• Exterior materials (stucco, brick, stone, etc.)
• Base type
• Improvements or improvements made to the house
• Information on electrical, plumbing and heating systems
• If any business is conducted on the property, for example a home investment business
• Number of people living in the house
• If you have dogs, a pool and/or trampoline
• Security devices (deadbolts, monitored security systems, fire alarms, etc.)
• Access to fire service
• Distance to the nearest fireplace
• Current home insurance company name
• Personal information such as your date of birth and marital status
• The amount of your mortgage

The best ways to reduce homeowners insurance costs

Shop around. Rates for the same homeowners policy can vary from one insurance company to the next, so comparing home insurance rates with multiple companies can help you find the policy you need at a reasonable price.

Increase your home insurance deductible. You can save on home insurance costs by increasing your deductible.

Connect your home and auto insurance. Summary insurance means buying both home and auto insurance policies from the same company. A rollup discount is typically one of the best deals you can find.

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We used data from Quadratic information services, a provider of insurance data and analytics. Prices for different coverage limits, deductibles and credits are based on zip codes across the country.

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