RateReport :: January 2011 home insurance rates show steady increase

Average Home Insurance Premium Report :: Jan. 2011

In the most recent release of the HomeInsurance.com RateReport [January 2011 Edition] it appears that average home insurance rates have increased slightly across the country. The national average premium as sold by HomeInsurance.com in January 2011 was around $699 with state-specific premiums ranging anywhere from $400 to $1400.

Why the huge range?

There are a lot of factors that cause  home insurance quotes to vary from one homeowner to the next, and from one state to another. Some of these include the policyholder’s credit-based insurance score;  building type and square footage of the home; the building costs in the area; the condition/age of the home; and the likelihood of natural disasters occurring in that area.

Since there are a lot of factors that affect the cost of home insurance that a policyholder can’t control- it’s good to know which ones you can. According to the Insurance Information Institute a few ways to save money on homeowners insurance are to shop around, raise your deductible, package your home and auto insurance, upgrade your home and consider home insurance costs when purchasing a home.

Another way to keep your monthly premium down is to ask your insurance agent about other discounts that your insurer may offer. Some carriers offer discounts for new homes, smoke-free homes, retirees and/or certain security alarms.

“You can usually get discounts of at least 5 percent for a smoke detector, burglar alarm or dead-bolt locks. Some companies may cut your premiums by as much as 15 or 20 percent if you install a sophisticated sprinkler system and a fire and burglar alarm that rings at the police, fire or other monitoring stations.”

- The III

Overall, rates are up about 2.5% from the same time last year when average national home insurance premiums reported by HomeInsurance.com were around $683. State-specific increases are slightly more dramatic with Texas, South Carolina, Iowa, Nebraska and Washington DC all seeing at least a 5% increase in new policy premiums between December 2010 and January 2011. On the other end of the spectrum, homeowners shopping in Utah, Mississippi, Vermont and New Mexico all saw at least a 5% decrease in average premiums.

For more information on rates in your state visit the RateReport.

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