Buying a home is a serious undertaking. You get ready to move every single thing you own to a new location, learn your way around town from a new Point A, and invest a significant amount of your money. Regarding the last, you’re probably doing a lot of budgeting. Make sure you don’t forget to include the cost of homeowners insurance in Frisco, TX when figuring out the cost of homeownership.
When you budget for home insurance, there are two categories to consider.
You’re going to have to pay your home insurer a monthly or yearly rate for your coverage. You might be thinking, “do I really have to?” If you’re taking out a loan, the answer is almost definitely yes. The vast majority of mortgage underwriters will require home insurance to safeguard their investment in your property.
Generally, you’ll pay somewhere between $30 and $50 a month for every $100,000 of home you need to insure. The good news is that you can save by bundling your home policy with other coverage (e.g. your auto insurance) or paying your premiums in a lump sum once a year, if your insurer allows it.
On top of your premiums, you also need to consider your deductible. This is the amount you’ll have to pay before your coverage kicks in. A $1,000 deductible is pretty standard, so make sure you’re ready to cover this cost out-of-pocket in the event of a disaster.
If you’d like to get a quote for homeowners insurance in Frisco, TX to help with your home buying budgeting efforts, contact Mike Leonard Insurance Agency in North Texas. We’ll compare policies from our carriers Kemper, MetLife, Travelers, The Hartford, Safeco Insurance, Progressive, and American Strategic Insurance to help you find coverage that fits your homeownership budget.