Average Home Insurance Rates by State

The national association of insurance commissioners (NAIC) released its homeowners insurance report, providing data for average costs by state and other information.

Although the cost of real estate differs in each state, it still gives you a good idea what an average rate would be in each state.

Also, insurance companies have a team of professionals that evaluate risk, so the costs may be a good indicator of what is the safest place to own a home.

The Texas Department of Insurance develops policy forms similar, but not identical to homeowners policies countrywide, and should not be directly compared with any other state. The average in Texas is $1,372.

States with higher rates
1) Louisiana $1,144
2) Florida $1,083
3) Dist. of Columbia $963
4) Mississippi $939
5) Oklahoma $996

States with lower rates
1) Idaho $457
2) Utah $477
3) Oregon $491
4) Delaware $498
5) Wisconsin $495

The national average for home insurance is $764. The average rates for renters insurance countrywide is $193, and does not vary much by state. The study is based on premiums in 2005.

Mold Insurance Coverage for Homeowners

A new bill soon be introduced to Congress called the "Melina Bill", may solve mold problems for homeowners. The bill will create a national insurance program that will protect homeowners against losses from mold. This is just great news. Some houses are difficult to get mold coverage - especially if there was a water claim on it.

A few states don't allow insurers to exclude mold from homeowners insurance policies. However, the majority of states allow the exclusion of mold on the policies - but may be purchased for an additional fee.

Mold can result in major losses. Having mold coverage is important to prevent unexpected financial loss. In the states that allow insurers to exclude mold, you can likely add on a rider (additional coverage) on your policy, or shop for a home insurance company that offers the coverage.

Not only can mold cause major losses, but it is unhealthy for you. It can cause coughing and make you feel sick. So maybe this year, you should ask for a mold inspection for Christmas.

Florida home insurance getting better

Over the last few years, home insurance in Florida has become either unaffordable or difficult to get at all. This is why the state of Florida created Citizens Property Insurance Corp in 2002, which they call the state's insurer of last resort.

Recently, the Florida Office of Insurance Regulation announced that it is allowing four companies to take over 173,000 policies from the state's insurer. The private insurers will be offering rates that are lower than Citizens' current rates.

Consumers will be notified beginning Nov. 7 and give customers option of declining and keeping their Citizens' policies. From 2003 to 2006 Florida has returned nearly half a million policyholders to private insurers.

The four insurers participating in this take over are American Integrity Insurance Company, Landmark One Insurance Company, First Home Insurance Company, and Argus Fire and Casualty Insurance Company.

The good news is private insurers believe they can be profitable in Florida and consumers can get lower rates.

HO6 Insurance Policy - Condo Owners

The HO6 homeowners insurance policy is designed to provide coverage which is not covered by the master policy of the condo/townhouse association. For example, if water leaks out of an apartment and damages another apartment, an HO6 policy will protect the owners of the condo/apartments. It's also important to check with your homeowners association to find out what parts of the interior are covered by the master policy, so you get the right coverage. An HO6 policy basically fills in the gaps of the master policy.

HO6 Policy
* Covers your personal property
* Covers personal liability
* Covers interior walls and floor coverings
* Covers improvements or upgrades you made
* Usually has small deductible & fairly inexpensive
* Some associations require you have such policy

Masters policy (Policy for homeowners association)
* Does not cover your personal property
* Does not cover liability inside condo
* Does not cover improvements or upgrades you made
* Covers the condo building and some liability (such as walkways)
* May cover some interior parts

All Risks Insurance

There are several types of homeowners insurance policies. Coverage can be "all risk" or "named peril". Named peril policies cover only what is specifically noted in the homeowners policy. All-risk policies offer insurance on any peril except those excluded in the policy. The advantage of "all risk" is that it covers your property in the event of a disaster you did not predict. It is important that you read the policies carefully so that you understand your coverage.

Floods and earthquakes are two events that are generally excluded, but coverage can be added for an additional fee. Adding the additional coverage is important if you live in an area where such an event may happen.

A few other exclusions you might see in an "all risk" policy:
* Loss or damage of property from pollution.
* Loss or destruction of property intentionally or by gross negligence.
* Defective design and corrosion, rust & wear and tear.
* Electrical and mechanical breakdown of computers, electronic installations or boiler and machinery.

Florida's Tool for Comparing Homeowners Insurance

While I realize not everyone is from Florida nor a homeowner, I found that this tool demonstrates the importance of shopping around for insurance quotes, no matter where you live. The state of Florida created a tool to compare homeowners insurance in Florida where you can easily click on your county and compare the average rates of different companies.

I looked around this website myself. I found that in some counties, rates varied $600 to $1,300 which really isn't a lot, but substantial. However, in the coastal areas, insurer's rates varied from $1,700 to $7,000 and that is a lot. Please note, if you are in Florida and using this tool, not all companies listed may be writing new policies.

The launch of this website was sometime in June, according to a press release from the Florida's governor. To use the tool you go to ShopandCompareRates.com and then scroll down and click on compare homeowners insurance rates. Note to others, regardless of where you live or type of insurance, you could save a bundle by shopping around.

Hazard Insurance

Depending where you live, makes a big difference on what type of hazard insurance you may want. It wouldn't make sense to live in Florida and want Winter Storm insurance, or living in Colorado and wanting hurricane insurance. Obviously. So just because the coverage exists, doesn't always mean you will need it. When you buy a comprehensive homeowners insurance policy, there may be many hazards that it already covers, but you may wish to seek additional hazard insurance for specific hazards. If you are unsure which types of hazard insurance you should get, you may want to ask an insurance service. The rates will vary depending on how likely the hazards may occur in your specific area.

Types of Hazards:
Dam Failure
Earthquake
Fire or Wildfire
Flood
Hurricane
Landslide
Thunderstorm
Tornado
Volcano
Winter Storm
and more..

Dog Bite Insurance

More than likely your dog will not bite anyone, but just incase your friendly companion accidently bites something, maybe you should get protection? Even if you don't own a home, you can get that type of protection. Both renters insurance and homeowners insurance can offer liability insurance on your policy, but make sure it does not exclude canine liability.

There are a few exceptions of dog breeds that some companies will not insure liability on, but can usually find a company that will insure those breeds. Pitbulls and a couple others may be on the banned dog list for some insurance companies. It's a good idea to get liability insurance regardless if you have a dog or not, but having a dog, you don't want your dog to bite another dog or your friend. So you may want to consider getting a policy that covers you in case something like this may happen.

Most homeowners have insurance, but renters that may have dogs, don't always have renters insurance. Renters insurance is cheap and can protect you from the small risks of having a dog, but make sure it covers canine liability. Unless you have a really small dog, you may not need to bother, but if you have a bigger friendly dog, it may be worthwhile to consider this option.

If you have homeowner or renters insurance, and it does not cover canine liability, talk to your insurance agent about getting "personal umbrella liability' which might include canine liability, but be sure to check.

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