Homeowners insurance: How much will it cost?

by Carolyn Kay 10/29/2023

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

Carolyn Kay

As a Real Estate professional, I specialize in helping my clients buy, rent or sell properties in Westchester County. I am passionate, dedicated and committed to my clients and my first priority is to provide them with first class service and guidance throughout the entire process. It has been said that I go above and beyond for my clients to get the deal closed! I have experience working with clients who have financed their purchases with either a conventional, VA or FHA loan and have a good understanding of how they work; no sale is too big or too small for me to take on. My family and I relocated to England for 2 ½ years, this was a wonderful experience but at the same time, it was overwhelming. I have first hand knowledge of the challenges as well as the positives in discovering a new community. I was born and raised in Scarsdale and once married, my husband and I decided to raise our two daughters here. Both of our daughters successfully graduated from the Scarsdale schools and are both married, living and working in Manhattan. After living in the same house for 30 years my husband and I took the leap, sold our home and bought and renovated a condo townhouse in another town. Once again we are discovering a new community and fully understand the highs and lows of selling a home we loved and buying and making a new home. I feel that my personal real estate experiences have made me more in tune with my client’s needs and therefore better able to help them navigate through the complex process. Please call me so that I can put my knowledge and experience to work for you.