Property Insurance Rates

Property insurance quotes are usually in the middle range of insurance premiums. They're usually lower than business liability insurance quotes, but often higher than term life insurance quotes. The average homeowner’s policy typically ranges from $45 to $75 per month. Renters' insurance quotes or condo owners’ quotes are often no more than $100 per year. Of course, this cost can vary significantly depending on the size and value of the home, the value of the owner’s furnishings and belongings, and the geographic location of the house. Property insurance rates for homes in Hurricane Alley or in an earthquake-prone area will cost more than a home in a relatively safer location, due to the increased risk involved to the carrier for claims. Business insurance rates can also vary due to the location of the business, as well as to the size of the company, the type of business venture it is, and the types of policies purchased.

Auto insurance rates can vary dramatically, as well, and are affected by a number of risk factors, including the city and state of the auto and driver, the driving record of the persons to be insured, and the type and age of the auto. States with no-fault auto insurance typically see lower premiums than states without due to the litigation possible in states with fault-based insurance.

Property Insurance Cost

It is good to remember that with property insurance, the cheapest coverage is not always the best, and that “best” is a relative term, dependent on your budget and your insurance needs.

A business, auto, or home owner can purchase a bare-bones basic policy that may not cost as much as a more comprehensive policy with higher coverage limits and options. However, when damage or loss occurs, the contract with higher limits and coverages will allow for higher reimbursements or pay to replace an item without any depreciation adjustments. You should evaluate and compare the differences between premiums and deductibles as well as between basic and more comprehensive policies before settling on a policy that may not meet your needs when damage or loss occurs. You may appreciate the lower premiums while paying regularly for them but regret the purchase later if the basic policy doesn’t replace or repair the damaged item to your satisfaction.

Last Updated: 08/20/2013

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