7 in 10 People Get This Home Insurance Question WRONG!

affordable home insurance

How Much Is Home Insurance For This Home?

Can you guess how much it would cost a year to insure this home with over $1 million in total coverage?

A. $1805/yr.

B. $2805/yr.

C. $3805/yr.

D. Higher

Any investment requires oversight and review to make sure you have proper protection without overpaying.

Home Insurance is no different, but that doesn't necessarily require reviewing the policy every year.

Having a trusted insurance advisor is key.

We typically recommend every couple of years, since most insurance companies will make rate increases or decreases during that time period.

You can also use a home insurance calculator for an estimated premium.  

Back to the quiz question:

You might be surprised to learn the answer is A.

$1805 is the premium (circa 2024) we could find with a top-rated home insurance company.   

What could we do for your home and auto insurance premiums? 

Remember, a lower home insurance premium also means lower mortgage payments if you escrow your house payments.

What is the Largest Investment you own?

Chances are it’s your Home… 


So, why are nearly 2/3 or 59% of all homeowners under-insured, according to Marshall & Swift/Boeckh, LLC

(MSB), a leading provider of building replacement cost data, on their most significant investment?

Not because you don’t care, it’s because you don’t know any better.  

That’s why we wrote this article to help you with getting the right homeowner's insurance coverage.

If you’ve been with the same home insurance company for 10, 15, 20, or more years, there’s a high probability you are way under-insured and most likely paying too much for too little coverage.  

One gentleman we spoke with was paying over $4,700/yr. for a 1900 sq. ft. home and had not paid attention to the premium for the past 20 years.  

Now that he's getting close to retirement, he asked a few neighbors what they were paying.  What he found was most everyone was paying around $1400 to $1500 a year for a similar home, and he was not pleased. 

Just in the past few years, home construction cost have jumped because of supply and demand for material, plus a tight labor market forces higher wages for construction companies. 

Your $250,000 dwelling limit sounded like enough coverage when you bought your home for $225,000.  

The problem is, if you are faced with a significant loss, it could easily cost a lot more now to replace.  Building one home cost a lot more than when crews were building the entire neighborhood. 

A typical homeowner shortfall in coverage is at risk to pay an additional $30,000 to $50,000  out of pocket, or more, towards the actual cost to rebuild their home that their current home insurance policy does not cover.

One of the most common reason is not notifying their insurance agent or broker after remodeling or renovating the property.

Here are just a few things to take into consideration when rebuilding a home.

  • Demolition cost of the old house
  • Permits and new construction plans
  • New foundation if a total loss
  • Single home construction cost vs. multiple home subdivision pricing is higher
  • General contractor profit margin

This also doesn’t take into consideration content coverage for your personal belongings.  

Is it time to review your coverage and what you are paying for home insurance premiums?  

Get some peace of mind and maybe save some money in the process.

Don't Forget About Renters Insurance

best renter’s insurance

Just because you are renting doesn't mean you don't need protection for your personal property, in case of theft in or out of your rental property.  

If there was a fire in the building, where would you live?  

It's not the responsibility of the landlord to provide alternative living quarters if you're forced to move because of fire or even a flood from a neighbor's toilet overflowing.

Also, what happens if you cause damage to the property from a claim like a kitchen fire or tub that overflows?  

You could be looking at a lawsuit equaling thousands of dollars, plus lost revenue for the landlord. 

 Affordable Renters Home Insurance

In most cases, for less than 50 cents a day you can have the peace of mind your personal property is protected with full value replacement cost coverage and liability in the event the property is damaged because of a covered loss.  

Plus, renter's insurance would pay for another place to live while the rental property is being repaired.

Lower Home Insurance Rates are Easy

If you know where to look.

Start with a simple Home Insurance Calculator

Once you have an idea of what the best premiums are, you can have your insurance agent or broker help you find the best company. 

Let's start finding better, more affordable homeowners insurance TODAY.  Click on the link button below and we will send you the best companies and quotes.  

About the Author

John Espenschied is a long-time veteran of the insurance industry. He has worked in various positions within the industry for over 20 years, and for the past 15 years, he has been the owner and operator of Insurance Brokers Group, an independent insurance agency. John loves advising people on the insurance that meets their needs and goals, whether it be for personal or commercial purposes.

John is married to Melissa, and they have three children together, as well as three grandchildren. In his spare time, John enjoys golfing and playing in the golf league, biking to their local brewery along the Missouri river, and going on motorcycle rides when the weather is nice.

John Espenschied

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