What Is the Average Cost of Home Insurance?

Video Transcript

"This is John Pinelli, financial representative. Gonna be talking to you today about the average cost of homeowners insurance. Homeowners insurance can be offered through a variety of carriers, and can range greatly, depending on the state that you live in, how prone your home is to natural disasters. How much you have in personal property, how much your home is worth, etcetera, etcetera. The median cost for homeowners insurance in the United States in 2007 was about $760.00, so this does vary greatly from state to state. California, Florida, are closer to a thousand dollars, and this is in annual premiums. California and Florida are closer to a thousand dollars, where you may have some states on the lower end of the spectrum, like Montana or North Dakota or South Dakota, etcetera, who are closer to, maybe, like, four hundred, three hundred dollars a year in premiums. This is based on the cost of the homes. Obviously in California and Florida are quite a bit more than the average cost of homes in some of those other states. So, homeowners insurance will cover everything from natural disasters, such as flood, fire, tornado, earthquake, depending upon where your location is. If you're located in areas which are more prone to these natural disasters, your policy may not cover you in those areas. Now, it will also cover things like theft, burglary, etcetera. So if items within your home are lost or stolen, those items will be covered by your homeowners insurance policy. Another very important thing that homeowners insurance will cover, is, if someone is injured in your home, and they decide to sue you for some money, the homeowners insurance will cover liability coverage for that individual who may be hurt or injured within your home. Now this is important because medical expenses can rack up quite quickly, and if someone trips and falls in your home and breaks their leg and decides to sue you, you've got some coverage there that will protect you in the event of something unfortunate like this happening."