Insurance is a key component to either owning or renting a dwelling; unfortunately, it\’s like installing a higher quality roof, better insulation, or energy-efficient windows. You know it\’s there, and it may give you some peace of mind, but it\’s not so tangible.
Oftentimes we can overlook those things that are not tangible. Insurance is one of those that\’s not tangible until you need it. Whether it\’s health insurance, a home warranty, or a renters insurance policy, you probably don\’t think much of it until you need it.
If you are a homeowner, you need to consider homeowner\’s insurance, even if your property is owned outright. Take a look at your options and make sure that your policy will replace the appreciated value, not just the stated value at the inception of the policy. In addition, you may need flood insurance, and you may want to consider an umbrella policy.
If you are a homeowner and have a mortgage on your property, you probably have your homeowner\’s insurance policy included in your escrow account and paid as part of your mortgage. This may then be an area that is out of sight or out of mind.
\”According to the National Association of Insurance Commissioners, the average annual homeowner\’s insurance premium is $1,192.\”
Highest Average Premium by State
- Louisiana: $1,967
- Texas: $1,937
- Florida: $1,918
- Oklahoma: $1,875
- Kansas: $1,548
Lowest Average Premium by State
- Oregon: $659
- Utah: $664
- Idaho: $703
- Nevada: $742
- Wisconsin: $762
On the other hand, if you are a renter, oftentimes, landlords will now require a renters insurance policy but will not include it in your rent. Renter\’s policies typically cover the contents of your dwelling, while the landlord will have their own property insurance for the dwelling itself.
\”The average cost of renters insurance in the U.S. was $180 a year, or just about $15 a month, in 2017 per data from a 2019 report by the National Association of Insurance Commissioners (NAIC), ranging from a high of $258 to a low of $120. The cost of your renters premium depends on a few things, but a main factor is how much liability coverage and personal property coverage you buy.\”
Most expensive states (per year):
- Mississippi: $258
- Oklahoma: $236
- Alabama & Louisiana (tie): $235
- Texas: $232
- Georgia: $219
Cheapest states (per year):
- North Dakota: $120
- South Dakota: $123
- Wisconsin: $134
- Minnesota: $140
- Iowa: $144
Whether you are a renter or an owner, you want to make sure that you have a good handle on what you own. Keeping an accurate list of the contents of your household in multiple locations will ensure you have the item, description, and, ideally, photo to include in your case in the event that, God forbid, your dwelling is robbed, the property floods, or burns down.
The insurance policy, along with building a content list, will give you a level of peace of mind. Ensuring that you are not only doing your best to have a great defense but that you are able to replace those items to the best of your ability if something were to happen.
CTA:
My call to action is to look at what policies you have in place and whether it is time to do an audit, to know what you have, where it is stored, and substantiation otherwise. Reviewing the policy and contents once a year (at a minimum) could be especially helpful in the event of a loss.
Citation:
Howard, Pat. \”How much does homeowners insurance cost?\” Policygenius, Policygenius Inc, 6 January 2020,
https://www.policygenius.com/homeowners-insurance/how-much-does-homeowners-insurance-cost/.
Citation:
Sachon, Logan, and McGinley, Kara. \”How much is renters insurance?\” Policygenius, Policygenius Inc, 12 February 2020, https://www.policygenius.com/homeowners-insurance/how-much-does-homeowners-insurance-cost/.
