Question 1

How much does home insurance cost?

Accepted Answer

The national average is $1,800–$2,500/year for $250,000 in dwelling coverage. Rates vary significantly by state, home value, coverage amount, deductible, location, and claims history. Coastal and disaster-prone areas pay more. Bundling with auto insurance saves 15–25%.

Question 2

What does homeowners insurance cover?

Accepted Answer

Standard policies (HO-3) cover: dwelling damage, personal property, liability, additional living expenses, and other structures. They cover perils like fire, wind, hail, theft, and vandalism. Floods and earthquakes require separate policies.

Question 3

How much homeowners insurance do I need?

Accepted Answer

Enough to rebuild your home at current construction costs (not market value). Most insurers recommend dwelling coverage equal to 100% of replacement cost. Personal property coverage should be 50–70% of dwelling coverage. Liability minimum of $100,000, though $300,000–$500,000 is recommended.

Do you own or rent your home?