What's the average cost of home insurance?
I live in New Mexico. I'm buying a house for the first time and need insurance. How much can I expect to spend on a policy?
“The cost of home insurance depends on a variety of factors. How your rate is determined is similar to how car insurance is rated.
In New Mexico, the average home insurance rate is $2,024 a year for coverage on a home with a $250,000 value.
However, this can vary based on a variety of factors. When determining a rate, insurance companies look at the type of home you have, its location, your credit history, and your claims history. They may also look at whether you’ve been previously insured or owned a home before.
Depending on the type of home you have and its location can impact your rate significantly. A home in a flood zone will cost more to insure than a home that isn’t, solely based on risk.
The same would apply to an older home versus a newer home. The best way to determine what the average cost of home insurance will be for you is to shop around.
When comparing rates, look at a variety of companies. This will give you a good idea of how much home insurance may cost based on what you require. From there, you can decide what policy would be best for you.
Alternatively, take a glance at car insurance companies that also provide bundling discounts with home insurance. Compare quotes on Jerry to find the best car insurance rate and then add home insurance to maximize your savings.”
MORE: Home and car insurance
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