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Average homeowners insurance cost

By Mike Heuer

Rates Are Up For Average Homeowners Insurance Cost In United States

When it comes to threats to homes, nothing beats Mother Nature, which is responsible for the vast majority of highly destructive as well as deadly events that cost insurers a great deal of money. In recent years, floods, tornadoes, hailstorms and other weather events have borne out the highly destructive ability of Mother Nature, which in turn has driven up the homeowners insurance rates in the United States.

The average homeowners insurance cost has risen to about $1,000 per year, according to the National Association of Insurance Commissioners. That is up more than 10 percent from just two years ago.

Topping the threat posed by Mother Nature on a per-occurrence basis are earthquakes, which, while relatively rare, prove highly destructive when the strike populated areas, according to the Insurance Information Institute. California and Alaska are the states most prone to earthquake occurrences and resulting damage, although the rural nature of Alaska mitigates the potential for damages. But highly populated California is highly vulnerable to future occurrences with a 60 percent likelihood of a destructive and potentially deadly earthquake striking southern California and a 62 percent chance of one striking the San Francisco Bay area within the next 30 years, according to the Insurance Information Institute.

Other states vulnerable to earthquakes include Nevada, Washington State, Oregon, Arkansas, Missouri, Tennessee and Kentucky.

Flooding is the second most destructive force of nature and can strike almost anywhere in the United States, according to the Insurance Information Institute. While many homes are not particularly vulnerable to external flooding, those located near rivers, along coastal areas and particularly along the Gulf Coast are highly vulnerable to tidal surges from hurricanes and tropical storms as well as areas that get a great deal of snowfall and rainfall.

Flash flooding is the deadliest force in nature and claims the most lives of any weather even each year, according to the National Oceanic and Atmospheric Administration. And for homeowners living even in the desert, flash flooding can be a highly destructive force for their homes. Torrential rains in mountainous areas create immediate runoff that flows to the lowest possible point, which often is where communities and homes are located.

Other ways flash flooding occur include when the spring thaw melts ice and snow, which then plugs and overwhelms drainage systems in cities and small town, resulting in flooding that can cause a great deal of damage. And, of course, when rivers rise beyond their crest, flooding becomes widespread. The tidal surge that accompanies hurricanes and tropical storms are the most destructive element of such storms, even more so than the high winds.

Hailstorms are the third-costliest of Mother Nature’s trio of destructive forces and can strike nearly anywhere but especially in the Great Plains states and the Midwest, according to the Insurance Information Institute. When high winds pick up and keep moisture trapped in the upper cloud systems, they form into ice until becoming large enough for gravity to overcome the winds holding the hail aloft. And when the hail falls, it can damage rooftops, windows, vehicles and possibly even cause death.

Such destructive events along with tornadoes and other weather-related perils have driven up the average homeowners insurance cost in recent years.

One comment

This is a question that cnaont be answered by others. Sometimes State Farm will be the best rate other times it will not. What you should do is shop around. I would start with some offices that may be referred by friends and definitely make sure a reputable independent agent is one of the places you visit (if you get a quote from at least 3 places chances are you will have a pretty competitive rate). Independent agents have access to more than preferred market where companies like State Farm, Farmers, Country Companies, Allstate, American Family use captive agents which only have access to one product their own.In the process of getting quotes you need to get an apples to apples comparisons. You can do this by giving each agent a copy of your current policy declarations pages, and tell them you would like a quote based on what you already have. To many times an agent will cut coverage corners in order to beat another quote. Another thing you should do is disclose any and all traffic tickets and the dates they occured as well as auto accidents even if they were not your fault. The companies will find out regardless and will raise your rates after the fact. You should be able to get a copy of your Motor Vehicle Records from the DMV. Also be willing to sign up for automatic payment plans, some companies give a decent discount as well as waiving the monthly billing fees.In your search I would avoid On-Line only companies like Geico, Esurance and any Direct version of a company that you can get through an agency. The reason they may sometimes be less expensive is because you have no agent, and you get what you pay for. So unless you are pretty savy with the whole insurance thing I would avoid these companies

by Xing on April 13, 2014 at 10:32 pm. Reply #

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