Home insurance is crucial when you’re trying to live a stress-free life. You never really know when a problem is going to come up, and when it’s house-related, you never really want to deal with it. It’s kind of like a wart that won’t go away! Not only that, but they’re going to make up a relatively large portion of your insurance budget. Living without a roof over your head isn’t ideal by any means, which means finding a reasonable rate for your house insurance is critical. When you’re a renter, the average insurance rates that you’ll pay are going to vary. There is a minimum of $160, an average of $250 and a maximum of $410. You shouldn’t expect to pay any more than $410 if you’re renting. With that being said, there are a few different types of insurance to be considered. Rental premiums include stuff like:
Liability Insurance – If you somehow cause damage to another party and they decide to sue you (let’s say a mailman slipped on icy steps or you flood a neighbours unit by accident), you’ll be covered.
Contents Insurance – The contents of your home are going to be accounted for with this insurance. If you ever go through a house fire or get burglarized, you’ll still be in great hands.
Additional Costs – Insurance is going to cover any fees that may be associated with your home.
For homeowners, the insurance premiums that you pay for are going to vary. You’ll have all of the included components above, but it also covers the cost that comes along with fixing or repairing your property. Coverage is going to vary from policy to policy, and there are even some relatively “out there” policies available. If you live in a tornado-prone region, natural disaster coverage is ideal; cost is much different, though.
The cost will be determined by the price of your home. If a house is worth around $100-300k, home insurance could cost around $860 per year. More expensive homes ($300-700k) would be about $920 per year, while $700k to $1.5m is about $1,400.