After dealing with interest rates, inspections, and appraisals, the moments that lead up to closing can be incredibly exciting for any new homeowner! Just as it is with elements such as a new car purchase, one of the first questions people ask is how much their premium will cost each month. This is quite understandable, as this purchase is likely the most important and meaningful in one’s lifetime. Missouri is situated in the middle of the pack as far as pricing for homeowners insurance, with an average monthly rate of about $228.

Crunching the Numbers: How Dwelling Coverage Adds Up

One of the biggest factors in how much your homeowners policy costs is the amount of dwelling coverage you need. This is the element of your policy that will kick in and dutifully pay to rebuild the structure of your home if it is damaged or destroyed. If your house is luxury-grade or has high-end features, more dwelling coverage will be needed to rebuild. Older homes often will cost more to insure, because they do not boast the numerous safety features that make modern builds easier on the repair end.

Beyond Four Walls: Unpacking the Comprehensive Coverage in Home Insurance Rates

Homeowner’s insurance policies typically include these standard types of coverage:

  • Dwelling: this will pay for the overall damage to your dwelling from any covered event such as a flood or fire.
  • Other Structures: This covers structures on your property that are not attached to the house. Examples are storage sheds, Quonset huts, and fences.
  • Personal Property: This pays for belongings that are damaged or turn up missing.
  • Loss of Use: This is also known as “additional living expenses coverage.” It pays for you to stay elsewhere when your home is uninhabitable because of sudden covered damage.
  • Personal Liability: This pays if you accidentally injure someone or impose damage upon their property. 
  • Medical Payments: This coverage will take care of medical bills for anyone injured on your property, regardless of fault. 

How to Reduce the Cost of Homeowners Insurance:

There are a variety of different elements factored into the task of deciding on homeowners insurance rates. Pain points such as high criminal activity or areas prone to bad weather may see homeowners encountering rising rates. A larger home will affect how much you pay, as well as recreational fixtures such as a swimming pool that affect day-to-day levels of risk or liability. Owning certain breeds of dogs that some people may see as dangerous can also affect your rates, but there ARE many solid ways to cut down the amount you are spending on homeowners insurance:

  • Shop Around: Getting home insurance corps every year is the savviest way to ensure that you’re still always walking away with the coverage and perfect fit that’s right for you. All of us here at the Alexander Insurance Agency of St Charles recommend that you compare rates from at least three different companies. Take special care to ensure that the deductibles along with the coverage limits are nearly the same for each comparison.
  • Raise Your Deductible: A higher home insurance deductible makes the benefit of a lower rate possible. Simply raising your deductible from $1000 to $2500 can save you over 10% annually on average! If you need to file a claim in the future, it’s best to be sure that you’ll have enough cash reserves on hand ready to do so.
  • Ask About Discounts: many insurance providers will offer substantial discounts to assist customers looking for lower rates. If you bundle your homeowners insurance with another policy such as auto, you could get a discount. Equipping your home with deadbolts, security cameras, and fire alarms can help with additional savings as well. If you have not had a claim within the past 3 to 5 years, many insurers are generous enough to offer a discount. 

Credit CPR: Reviving Your Score for Better Home Insurance Rates

In most states, your credit-based insurance score is fair game for insurers to use while they are Calculating your rates. Due to some very esteemed studies that have shown a correlation between excessive claims and poor credit, those who have suffered in the credit realm may end up paying more for homeowners insurance. Even though it could take some time, building your credit can offer you a fair amount of savings in the long run. In some cases, homeowners who have suffered an interruption of their credit score have paid more than 80% higher than those who are in good standing.

Smart Sizing Security: Matching Your Home Insurance to Your Lifestyle and Assets

Policyholders who are answering this question must do more than just make sure they are protected from hazards. One general rule of thumb is that homeowners should choose replacement cost insurance coverage. This provides enough money to rebuild the home as it stands in the event you face a total loss. The alternative to this is market value coverage, which pays just what the property is currently worth.

Factors That Affect the Cost to Rebuild:

One of the issues homeowners encounter when deciding how much homeowners insurance they need is construction cost. The price of labor and needed materials are two predominant concerns and can both be hard to predict in terms of future value. If a storm or fire destroys many homes in the neighborhood at once, then the price will typically rise due to the intense pull on the all-important demand factor. Because of this, homeowners should always be very cautious and can feel safer by increasing the limit on their dwelling policy.

How Much Personal Property Insurance do I Need?

Personal property insurance is a very vital component of any homeowner’s well-planned insurance policy. Policyholders generally purchased enough protection to cover their range of possessions. Personal property insurance is frequently sold as a solid percentage value of the home. The total coverage for personal property will generally default to equal 50% to 70% of the dwelling’s total insured value. It is crucial to not just choose the default coverage and consider any unique situations for the property. This means estimating the value of all covered property as essentially every item in the house needed if you had to suddenly relocate.

Experience true peace-of-mind with the Alexander Agency of St Charles as your trusted homeowners insurance partner! With decades of dedicated service and a wealth of experience in the insurance industry, we consider the importance of safeguarding your home and valuables. Don’t leave your most valuable investment to chance – let us be your shield against the unexpected. Contact us today for comprehensive and dependable homeowners insurance that puts your family and legacy first!