When you are purchasing homeowners insurance you should expect to pay $3.50 for every $1,000 of your home's value. For a $300,000 home, this will be $1,050 every year. Your premium rate will be affected by anything from the age and location of your home to whether or not you have a pool.
On average a homeowner pays about $94 each month and has a deductible ranging from $500 - $1,000. Your deductible may be higher if you choose to go with a lower monthly rate. If you decide to opt for a $1,000 deductible instead of a $500 deductible expect to save around 25% each month.
Additional insurance policies will probably further increase your cost. Some areas will require you to have flood insurance and if you are in an earthquake zone you may want to consider adding that as well. You should ask the previous owners or neighbors what typical weather patterns are like, to better understand which additional coverage you should add.
Your premiums will increase after every claim you make so be prepared. After one claim, the average monthly premium will rise by 9%. The area you reside in will also affect your rates. If you live in an area like Florida with a lot of natural disasters, expect to pay more than someone living in the midwest.
Homeowners' insurance is also based on your credit score. A bad credit score may increase your premiums an incredulous 90%! Most agencies will use your credit score to adjust your premiums so be aware if you have bad credit.
You can help reduce your premiums by doing things such as adding a home security system, bundling your insurance, and making your home more disaster-resistant.