Homeowners insurance rates are based predominately on the replacement value of your home. The location of your home determines its value as well as how much your homeowners insurances rates are going to be.
Prior to getting quotes and comparing rates with the free tool you’ll find on this page, you will want to make sure that you know the factors that will affect the homeowners insurance rates you will receive.
Many people don’t realize the importance of maintaining adequate homeowners insurance until some type of catastrophe occurs. The mortgage companies know the importance of your homeowners insurance; therefore they make you include your homeowners insurance payment in with your mortgage payment; at least as long as you have a mortgage on your home.
Homeowners Insurance Rates For Closing
When you purchase a new home, you must include the homeowners insurance rates for closing. When people purchase a home they just want to know “how much I need to put down, and how much will my monthly payment be”? They don’t realize that the closing is made up of 3 components:
- Actual Down Payment
- Itemized Closing Costs
- Prepaids – A. Per diem interest based on the date of closing. B. Taxes based on month of closing & due date for your state. C. Homeowners Insurance for 14 months
Your mortgage company wants 14 months of homeowners insurance to hold in escrow to attach to your mortgage. This advance account is called an impound account in places like California. If the buyer agrees to use the same insurance carrier, they can purchase the seller’s escrow account especially if the taxes are already paid for the year at the time of closing.
Homeowners Insurance Rates For Flood Zones
Flood insurance is not a standard part of a homeowners insurance policy; therefore, homeowners insurance rates for flood zones have to be considered in addition to your base rate, especially if you live by waterways like:
- Coastal Areas
- Major Rivers
- Streams
Living near small waterways like streams will not require the same homeowners insurance rates for flood zones as living near a major river or coastal areas.
Flood insurance is issued as a rider, and is not covered by the insurance company itself, but by the Federal Flood Insurance Program. Meaning, you can purchase flood insurance through your homeowners insurance carrier, but they do not cover your flood insurance. You also have the option of obtaining flood insurance directly from the Federal Flood Insurance Program.
Homeowners Insurance Rates In Florida
Floridians have to be shell shocked by the rising homeowners insurance rates in Florida. Post Katrina hurricanes have cost some Florida residents their homeowners insurance. Others are complaining about how astronomical their homeowners insurance rates in Florida are now. For the same house, one guy’s homeowners insurance rate went from $500 per month to $1,350 per month.
The Citizen’s Property Insurance Corporation was formed by the state in 2002 to assist homeowners with flood insurance. By 2005 they were left holding the proverbial bag by private insurance carriers and had to be bailed out with 1.73 billion dollars of the state’s surplus. People were so outraged at the increases of their homeowners insurance rates in Florida that they took their concerns to the Capitol.
Homeowners Insurance Rates In Louisiana
The Louisiana 2008 General Assembly is addressing the concerns of post Katrina homeowners insurance rates in Louisiana. If you are a Louisiana resident, you can be proactive in creating change in the rise in homeowners insurance rates. Some of the bills before the General Assembly are:
- Senate Bill 88 – Excess funds from the Insure Louisiana Incentive Program are being used to help those who have paid their premiums in past 12 months.
- Senate Bill 335 – Reorganization of Louisiana Insurance Code
- Senate Bill 245 – Types of Insurers and the risk bearing companies associated with them.
- Senate Bill 239 – Assistance with homeowners insurance premiums for those who qualify.
- Senate Bill 240 – Louisiana Insurance Guaranty Association limitation of liability.
- Senate Bill160 – Changes in deductible and how they are applied in the event of loss.
- Senate Bill149 – Keeps carriers from imposing fines and penalties on rate filings.
- Senate Bill153 – Appointment of LA Insurance Commissioner.
- Senate Bill 44 – Invitation for Grants for the Insure LA Incentive Program to assist with homeowner premiums.
- Senate Bill 17 – To regulate verification of LA Citizens InsuranceCorporation applications to ensure applicants have exhausted all homeowners property insurance options.
- Senate Bill 16 – Requires insurance companies to show effective dates and dates reflecting receipt of premiums.
These are bills currently before the Louisiana Senate. They are either assigned and/or pending. You can make a difference in homeowners insurance rates in Louisiana for you and you neighbors by making your voice heard.
Homeowners Insurance Rates On Energy Efficient Homes
Americans can receive discounts on their home insurance rates by purchasing Energy Star appliances and other means of energy efficiency. Builders are doing their parts in using energy efficient products and appliances on new construction. This is a question that is asked when obtaining homeowners insurance rates for comparison.
Ways To Save On Home Insurance Rates
There are many ways to save on homeowners insurance rates. Just to name a few ways you can:
- Detail you policy to suit your needs by becoming knowledgeable about your needs and options.
- Opt for a higher deductible
- Making sure you have a good credit score when you apply
- Location and additions to your policy like dogs and swimming pools add risk; try to omit them or at least take calculated risks
- Updates to your home and your policy can save you money
- Taking security measures decreases your homeowner’ insurance rates
One last tip would be to combine you home, auto, and life, if necessary to save money. The best way to get the best rate is to shop around. You can look at several options online.
Where To Get The Best Homeowners Insurance Rates
Even if you end up calling different carriers directly, you can look at some of their plans online to research your options before narrowing your choices down.
To start making some comparisons in addition to educating yourself about the above content, click on the quote tool at the top of the page to be directed further.
Compare free online homeowners insurance rates now!