The cost of an average home insurance per month depends on a lot of factors; such as;
- The type of policy you choose: There are different kinds of homeowners policies which depend on the kind of coverage they offer. A comprehensive policy is more expensive.
- Location of the house: The location where your house is situated plays the biggest role in deciding the quantum of your insurance. It may raise or reduce your premium depending on which state, locality or neighborhood your house is in.
- The amount of deductible: You can set your own level of deductibles. Deductibles are the values beyond which the insurance companies pay for the damages. A higher level of deductible will ensure a comparatively lower premium. However, do remember that in case of any claims you make, you will have to first pay up to the level of your deductible, hence only the insurance claim payment will begin.
- Any optional extra cover: You may include a lot of add-on to your home insurance. This may include coverage for an expensive item and their coverage outside the premises and accidental damage as well.
- Claims history: If you have been making a regular claim in the past, the insurance companies may be wary of such liabilities and the premiums may be higher or some companies may refuse outright to insure you.
- The type of property: It matters whether the home is a flat, mansion, condominium, bungalow etc. The size of the house matters considerably too.
- Commercial or residential use: A house which is used commercially will attract more premium than a house that is self-occupied by a retired person.
- Age of the property: A lot depends on the condition and age of the property. Old houses attract more premiums whereas well-maintained ones with security features will attract less. Sometimes modern houses with premium fittings and construction may also entail higher premiums. The roof, materials used etc. will also affect the premium.
Under normal circumstances, you can apply the thumb rule of insurance premium at the rate of about $35 per month for every $100,000 of home value. The national average of US home insurance comes to around $1,083 per annum.