typical dfw homeowners premium (West: home owners insurance, credit rating, buying a)

[unteagle]

We are buying a home valued at abiut $135,000. We have been quoted $600(underwriter denied coverage because of needed repairs), $1300 and $1400. Is the $1300 rate normal. They wanted to insure for $220,000. That seems high. The first company was going to insure for $150,000 which seemed a little low perhaps but more realistic.

[aggieplaya]

That seems high to me considering my home insurance is $1100 on a $280,000 value...but I know that many insurance companies look at different factors which could include your credit score and/or if you have other insurance like car insurance in which they could give you a discount for the multiple policies.

[Pete53FR]

My Insurance makes their quotes on a cost per square foot the is supposed to represent replacement cost new. Sometimes it can be really out of whack especially in older homes.

I pay $1200 on $380,000. Your credit rating, how far you are from nearest fire station and their loss experience in your neighborhood comes into play. I am sweating out my next quote based on the fact my whole neighborhood replaced their roofs.

Good Luck

[idezzire]

It very much depends what type of insurance you want, for a very stripped down HO1 policy, i'll say its at $550-700 but if you want a HO3, its gonna be about $750-900

[FalconheadWest]

Credit score is a huge factor but age of home is another. Many people who sell their homes built in the 70's and 80's are shocked by their premiums when they buy a home less than 10 years old. More things can go wrong with older homes, so you can't just ask a blanket question about a premium when the price of the home isn't a huge factor in your pricing. As already mentioned, distance to fire station and fire hydrant are important too.

[Double-G]

Originally Posted by FalconheadWest

Credit score is a huge factor but age of home is another. Many people who sell their homes built in the 70's and 80's are shocked by their premiums when they buy a home less than 10 years old. More things can go wrong with older homes, so you can't just ask a blanket question about a premium when the price of the home isn't a huge factor in your pricing. As already mentioned, distance to fire station and fire hydrant are important too.

I've seen much larger premiums on newish homes compared to homes built in the 70s and 80s.

Having inspected a fair few 90s homes I am not at all surprised...

[Pete53FR]

Lets face it Homeowners Insurance is much more than when it was regulated

[princealyy]

There is a big swing with these things, I was paying 558 for 260,000 in coverage, now I am paying 840 for 235000 in coverage.... it really all depends on the factors listed above (I am paying more because of what I was able to save on the auto with the new provider)

I would recommend that you shop it, but at the end of the day, older houses pay more, if there are repairs needed you pay more, if your credit isnt great you pay more, and if the neighbors are making claims you pay more...

Now that I think about it.. Home Owners insurance, you just pay more...

[carroll4628]

Keep in mind too that you're paying for the replacement value of the home (if a disaster strikes - fire, lighting, tornado, etc.). While it's thought of as an "in-kind" replacement - your 70s/80s home would now be a new home costing the insurance company $70-$100/sf to replace. BTW - we pay $1700 for a $550k home, so $1300 sounds way high.

[Pete53FR]

The old way Insurance would file intention to raise insurance rate for the next year and State Regulatory Commission would study the rate increase request and either agree or lower it. The result Texas was a low cost insurance state.

Now the Insurance Company announces their planned rate increase and than implements it. Result Texas is now high cost insurance state.