Understanding variables affecting the cost of a homeowners insurance premium

by Cheryl Pendenza - Realtor®/Broker Associate 10/13/2022

sidewalk with text about homeowners insurance

Many factors affect the cost of home premiums. Understanding them can help when choosing a policy fitting your budget. 

How much does the average homeowners insurance premium cost?

The average homeowners insurance premium is about $1,200 per year. This amount changes greatly based on numerous factors, like property characteristics, location, deductible, policy coverage and more. 

For example, you may have an older home, which can increase your monthly premium. Why? Older homes may be subject to more damages during perils due to the age of the materials used, wear and tear. 

How do I pay my homeowners insurance premiums?

There are two primary ways to pay insurance premiums: 

  • Your mortgage lender pays for the insurance on your behalf through an escrow account. 
  • You can pay funds directly to the insurance company and choose between different payment intervals. 

Do I have to pay homeowners insurance after closing?

How you pay for your home determines whether you have to pay for homeowners insurance costs immediately after closing. 

Typically, mortgage lenders usually require borrowers to pay insurance costs - which may be split - at closing through an escrow account. This amount is paid before and right at closing. 

How do I buy homeowners insurance?

You can purchase a policy online or over the phone. You can also speak with a live representative at a local insurance office near you. 

If you’re still unsure where to start searching for the right plan as a new homeowner, insurance premium information may be available from a connection in your real estate agent’s network.

About the Author

Cheryl Pendenza - Realtor®/Broker Associate

Bringing more than 30 years of experience to the table, Cheryl has a paralegal degree, banking background, and is a member of many professional, civic, and community organizations.

Qualified • Experienced • Skilled

"As a full-time REALTOR®, I am dedicated to providing my clients with a high level of service by building relationships, marketing, and negotiating on their behalf. As a homeowner, I realize how important homeownership is.

Cheryl brings warmth and compassion to her client relationships and referrals have become the backbone of her business. "I’m grateful for every referral and welcome the opportunity to help clients achieve their real estate goals.”

Cheryl Pendenza, Broker Associate affiliated with RE/MAX Andrew Realty Services since 1999 is a local businesswoman and formidable negotiator who can help you achieve your real estate goals. Supporting family, community and local business is important to Cheryl and she can often be found at one of the local restaurants, shops, or galleries.