How Much Is Insurance When Buying A Home?

  1. 37376 POINTS
    David G. Pipes, CLU®, RICP®
    Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
    Lenders normally require a mortgage holder to provide “hazard” insurance to cover the lender’s interest in the property.  This is normally interpreted to mean, a homeowner’s policy.  The amount of coverage requested by the lender does not necessarily match the replacement cost for the residence.  In California the mortgage holder cannot be forced to carry insurance in excess of the replacement cost of the residence.  Your insurance agent can compute the cost of the policy that you require.
    Answered on August 1, 2014
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  2. 1844 POINTS
    David W. Clausen
    Chief Executive Officer, Coastal Homeowners Insurance Solutions, Rocky Point, NY 11778
    Good Question. It will depend on many factors including; Year Built, Construction Type, Square Feet of Living Area, Roof Type, Updates to Plumbing, Heating, Electrical, & Roof, Pets, Pool & Credit history of the buyer. You cover the home for what it will cost to rebuild. The mortgage company will require this as well. On the appraisal it will list how much the appraiser feels it would cost. This is usually based on the GLA, or gross living area, of the home and the quality of construction. Also the area you live in will impact the rate as well. If you live in Florida you are more prone to hurricanes. If you live in California you are more prone to earthquakes. My suggestion would be to contact your local independent agent to get the best rate. As a very very rough idea it costs about $450 per $100,000 of building coverage on Long Island, NY. Hope this answer helps.
    Answered on September 10, 2015
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