Paying for a homeowners insurance premium: A beginners guide

by Bob Hummer 11/14/2023

sidewalk with text about homeowners insurance

Many factors affect the cost of home premiums. Understanding them can help when choosing a policy fitting your budget. 

How much does the average homeowners insurance premium cost?

The average homeowners insurance premium is about $1,200 per year. This amount changes greatly based on numerous factors, like property characteristics, location, deductible, policy coverage and more. 

For example, you may have an older home, which can increase your monthly premium. Why? Older homes may be subject to more damages during perils due to the age of the materials used, wear and tear. 

How do I pay my homeowners insurance premiums?

There are two primary ways to pay insurance premiums: 

  • Your mortgage lender pays for the insurance on your behalf through an escrow account. 
  • You can pay funds directly to the insurance company and choose between different payment intervals. 

Do I have to pay homeowners insurance after closing?

How you pay for your home determines whether you have to pay for homeowners insurance costs immediately after closing. 

Typically, mortgage lenders usually require borrowers to pay insurance costs - which may be split - at closing through an escrow account. This amount is paid before and right at closing. 

How do I buy homeowners insurance?

You can purchase a policy online or over the phone. You can also speak with a live representative at a local insurance office near you. 

If you’re still unsure where to start searching for the right plan as a new homeowner, insurance premium information may be available from a connection in your real estate agent’s network.

About the Author

Bob Hummer

Bob Hummer brings a wealth of experience with him; a practitioner in real estate in Northern Virginia since 1978, a Life Member of both the Million Dollar Sales Club and the Top Producers Club with over 2,500 Satisfied Families and President, Prince William Association of REALTORS in 1991. His experiences range from helping buyers and sellers attain their goals; to renovating historic homes on Capitol Hill; to counseling and assisting homeowners facing the loss of their home due to foreclosure. Since 1996, he has presented his free monthly Home Buyer and Home Seller seminars at the Woodbridge campus of Strayer University. In June 2023 he completed the Certified Probate Real Estate Specialist course and was awarded the designation CPRES. His goal is to assist individuals who inherited real estate and wish to sell. A former "Military Brat" and a retired Air Force Hospital Administrator, Bob has made more than 26 moves during his life and is extremely familiar with all aspects of a family relocating - whether it is across the street or across the nation.