Homeowners Insurance Is Through the Roof???

[Amatiq]

So I've been playing around with figures on several mortgage calculators. They all seem to estimate homeowner's insurance at around 800-1000 yearly. I've gotten a homeowners quote on a few homes, both around $100,000.00 purchase price...and they are showing WAY more. The lowest quote I've seen is $125.00 per month. 

Is that normal? Or am I missing something? Why would a homeowners insurance quote be so out of proportion to the "average". These homes are not that expensive, they don't have fireplaces, and I've never had a claim. 

[DallasLoanGuy]

yeah, if you are near the coast or something.

maybe the house has had a lot of claims?

the insurance folks can explain to you why your costs are what they are

[StartingOver10]

Where are you?

Here in Fl HOI is extremely expensive - average $200/mth for $200k to $250k home, nothing fancy.

So, where you are located makes a huge difference - in addition to the amount of coverage.

[BrianB_The_Loan_Professor]

As mentioned it varies by region and risk - 

You want a shocker get a quote for flood insurance - 

[Amatiq]

I'm in Nebraska, the Southeast corner. Also the home are all around 100 years old. 

[StartingOver10]

Here in Fl the age of the home is a material factor in the cost of the insurance

It may be the same in your area.  Do you have an insurance agent you know and trust? Have you tried an insurance broker?

Insurance brokers can shop all the available companies that service your area and give you quotes showing the coverage amounts and prices etc. It is worth a phone call rather than just sticking with a captive agent (eg: State Farm, Nationwide, etc).

[Amatiq]

I'll give that a try, Starting Over. I've always wanted a turn of the century home, but not if it's going to up my payment hundreds per month!

[StartingOver10]

While you are talking with the insurance broker, ask if there is anything you can do to minimize the risk to the insurance company. For example, here we have 'Wind Mitigation Inspections" and if the property meets certain standards having to do with roof structure and shutters etc the cost of windstorm insurance is substantially reduced.

In your area it might be similar - different criteria, but something you can do to the property to reduce the annual cost of insurance.

Most insurance agents do not volunteer this info - you have to ask.