David City, Nebraska
594 N 4th St.
David City, NE 68632
(402) 367-3177

How to Estimate Homeowners Insurance Costs Before Buying a House October 18, 2018

David City, Butler
How to Estimate Homeowners Insurance Costs Before Buying a House, David City, Nebraska

When buying a home, it’s important to understand that the listing price is not the only cost to think about. You will need to budget for a variety of expenses, including homeowners insurance. If you are financing your purchase through a mortgage loan, your lender will require you to have coverage before the deal can close. Typically, you will also be obligated to pay the first year’s premiums. For this reason, it’s a good idea to estimate how much you should expect to spend on a policy once you’ve found the home of your dreams. Here are the main factors to take into account.

What to Consider When Calculating Homeowners Insurance Rates 

The Cost of Rebuilding Your Home 

When estimating your homeowners insurance premium, consider the cost of rebuilding should disaster strike. Run quotes based on the specific features of the particular property you are eyeing. You must also choose between an actual cash value policy, which will pay the home’s market value minus depreciation, and a replacement cost policy, which will pay to rebuild based on current prices. 

How Much Your Valuables Are Worth 

homeowners insuranceNext, you will need to take a thorough inventory of all your personal possessions and add up their value, including items like electronics, jewelry, clothing, artwork, and furniture. Your homeowners insurance policy will cover the replacement of these items up to a certain amount in the event of a natural disaster, act of vandalism, or theft. Therefore, make sure you purchase sufficient coverage.

The Total Value of Your At-Risk Assets    

Homeowners insurance can also provide coverage against liability claims. Without it, your assets could be taken away if you are sued for an injury on your property or for causing damage to theirs. Thus, your estimate should include enough protection for the total value of what you own—including cars, boats, investments, and business assets.


If you need help determining an approximate cost for homeowners insurance before you finalize a purchase on a house, the professionals at First State Insurance Agency can help. They work with some of the most reputable insurers in the industry and can save you time and confusion by requesting quotes and comparing policies on your behalf. With office locations in Beatrice, David City, and Hickman, NE, it’s convenient to schedule a consultation. Call (402) 979-7585 to discuss your homeowners insurance needs, or visit them online to view a list of products available. 

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