If you plan to buy a house, the cost of insurance will play a significant role in how you budget the expense, and will subsequently influence the property and location you choose. The real estate specialists at Lani Properties Corp in Honolulu, HI, recommend exploring a variety of premiums to get a good feel for the best deal without sacrificing coverage.
What You Need to Know About Home Insurance
In a market where the median home sale price is $745,000, there’s no money to be wasted on inflated home insurance premiums. On average, homeowner’s insurance costs $85 per month or $1,015 annually in Hawaii. This varies based on three home categories detailed below with advised hurricane premiums:
- Wood (Single-Wall) Homes: Homes built around the 1970s are prone to damage, especially from fire and Oahu’s unpredictable weather. Consequently, premiums range from $560 to $2511. All come with a 2% deductible and an estimated $300,000 replacement cost coverage.
- Wood (Double-Wall) Homes: Double-walled homes were built around the new millennium with advanced materials that meet modern codes. As such, they offer greater protection and less liability. Premiums range from $319 to $2446 with a 2% deductible and an estimated $300,000 coverage.
- Masonry Homes: Because these homes are made of the toughest material, they are the least liable for insurance companies — even if you buy a house built earlier than the single or double-walled models. Premiums go as low as $285, though they still climb as high as $2446 for homes in higher-risk locations. They carry the same 2% deductible, as well as an estimated $300,000 replacement coverage.
If you’re looking to buy a house, it’s wise to take these numbers into consideration. The experienced agents at Lani Properties Corp. have worked in the Oahu market for 43 years and will help you find a deal that best matches your budget and needs. Call (808) 521-0081 to schedule an appointment with a real estate agent and visit their website to view their listings.