Today, we have a blog post that will explain the cost of home insurance.

In the United States, the average monthly home insurance premium is around $1,200 according to the Insurance Information Institute. But the price of your homeowners insurance depends on five main factors: where you live, the age of your home, your insurance claims history, your credit history, and the value of your home and belongings. But you can still exert some degree of control over the cost by adjusting coverage levels and your deductible amount (the higher your deductible, the lower your monthly premium).

Factor 1: Where You Live

Across the United States, the average home insurance premium varies pretty wildly, from around $650 per year in Oregon to almost $2,000 in Louisiana. Why? Because different parts of the country face different risk factors, like hurricanes on the gulf coast and tornadoes on the plains.

Factor 2: The Age of Your Home

This one is pretty simple — the older your home, the more wear and tear it’s accumulated over the years. Houses with ancient plumbing, outdated electrical systems, and aluminum wiring are more likely to cause problems, so if you fall in love with a mid-century ranch, make sure you can afford the higher insurance rates. Plus, older homes are often more expensive to repair, since modern standards for HVAC, plumbing, and electrical systems are higher than in the past.

Factor 3: Your Claims History

It might not seem fair, but if you’ve submitted homeowners insurance claims in the past, providers will probably raise the cost of your premium. The more claims you’ve submitted, the more risk you represent in the eyes of an insurer. It’s not that different from a car insurance provider that asks if you’ve been involved in any accidents.

Factor 4: Your Credit History

Along with your claims history, a homeowners insurance provider will look at your personal credit history to determine how much of a financial risk you might pose. Hopefully, you’ve already gotten your credit score in good shape prior to buying a home, but if not, your premium will definitely be higher.

Factor 5: The Value of Your Home and Belongings

This one is obvious — a $500,000 house costs more to repair than a $250,000 one, and expensive belongings cost more to replace. That’s why getting an accurate assessment of your home’s value is crucial; otherwise, your homeowners insurance claim might not cover all the repairs you need.


Author Profile

John Ford
John Ford

Over the course of 20 years in the Boston downtown real estate market, John represented and sold numerous, condominiums, investment and development properties in Greater Boston and in the surrounding suburbs

In addition to representing Boston condo buyers and sellers, John is currently one of the most recognized Boston condo blog writers regarding Boston condominiums and residential real estate markets. John's insights and observations about the Boston condo market have been seen in a wide variety of the most established local & national media outlets including; Banker and Tradesman, Boston Magazine The Boston Globe, The Boston Herald and NewsWeek and Fortune magazine, among others.


For over 24 years, John Ford, of Ford Realty Inc., has been actively involved in the real estate industry. He started his career in commercial real estate with a national firm Spaulding & Slye and quickly realized that he had a passion for residential properties. In 1999, John entered the residential real estate market, and in 2000 John Started his own firm Ford Realty Inc. As a broker, his clients have come to love his fun, vivacious, and friendly attitude. He prides himself on bringing honesty and integrity to the entire home buying and selling process. In addition to helping buyers and sellers, he also works with rental clients. Whether you’re looking to purchase a new Boston condo or rent an apartment, you’ll quickly learn why John has a 97% closing rate.


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John Ford and his staff can be reached at 617-595-3712 or 617-720-5454. Please feel free to stop by John's Boston Beacon Hill office located at 137 Charles Street.

John Ford
Ford Realty Inc
137 Charles Street
Boston, Ma 02114



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