And don’t forget to consider some ways to help keep your homeowners insurance costs down. Whereas a 4,000-square-foot house purchased for $500,000 may require a $1,200 premium to insure. According to the Florida Consumer Protection Coalition, AOB scams increased by more than 900 percent from 2008 to 2018. Having guaranteed or extended replacement cost (GRC or ERC) coverage means that your insurance company will pay a certain percentage more than your home's replacement cost if a regional disaster temporarily drives up the cost of labor and materials in your area. All insurance products advertised on Bankrate.com are underwritten by insurance carriers that have partnered with HomeInsurance.com, LLC. The offers that appear on this site are from companies that compensate us. Call your local contractors’ or homebuilders’ association and inquire about the average per-square-foot construction cost in your area. ... but are living in a hotel and spend $300 a week on food since you do not have a kitchen to cook in, then the insurance company will reimburse you $150, not $300. For a condo, your ALE coverage amount may be up to 50% of your dwelling coverage limit. These are the personal assets you own that are not specifically exempted from liability lawsuits by your state or the federal government. An average homeowner would need enough structure coverage to rebuild the house, along with tens of thousands in personal property coverage for the belongings inside. Many insurance companies offer earthquake endorsements or separate earthquake policies. If it’s $150 and your home is 2,000 square feet, then you should be insured for $300,000. Likewise, roof materials can affect your homeowners insurance rate. Vehicles are a notable exclusion, since they're covered by their own insurance policies even when they're parked in your garage or your driveway. But this compensation does not influence the information we publish, or the reviews that you see on this site. Our mission is to provide readers with accurate and unbiased information, and we have editorial standards in place to ensure that happens. For example, if you paid $1,000,000 for a 1,500-square-foot house, your premium may only be $650. Dishonest contractors inflate their costs and insurance companies often pay rather than face costly legal expenses. Otherwise, you would be on the hook for the entire amount of any damage that the house suffers. Bankrate.com is an independent, advertising-supported publisher and comparison service. What types of coverage do I need? However, it's important to note that certain items may not be covered by your policy. Home insurance discounts. This puts the average monthly premium at around $120, but keep in mind that insurers adjust their pricing in response to some highly local factors such as your level of exposure to natural disasters. Also, Hawaiian law does not allow insurance companies to rate insurance premiums based on a homeowner’s credit score. You do not need to be insured for an amount equal to your dwelling's value on the real estate market. In that same year, more than 380,000 residential properties burned. In addition, the Sunshine State is also known for high incidents of fraud, perpetrated by unscrupulous contractors, who exploit insurance companies following natural disasters. Each state has different rules regarding how protected retirement funds are from legal actions, so you should review local laws to determine what is at risk. Bankrate follows a strict editorial policy, so you can trust that our content is honest and accurate. In fact, some insurance companies do not cover homes in flood zones. Understanding rating factors should guide you when shopping for a home. Oceano, California has the second lowest home insurance rates. In California, 401(k) funds are better protected than IRAs, which means you might need to consider at least some of your IRA investments when estimating your total at-risk assets. Rates based on a one-time sampling of State Farm home insurance premiums from Quadrant Information Services. For example, asphalt shingles cost less to replace or repair than terracotta Spanish tiles do. It also covers legal costs if someone is injured in your home or on your property. What is the total value of your personal property, excluding vehicles? What regional risks, such as high humidity, or a propensity to flooding or fire, pose a risk to your home? Insurers use CLUE reports to rate insurance premiums. There’s no rule of thumb for how much your homeowners insurance should cost. 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