How expen$ive is home in$urance on STX???
My wife and I are moving to STX around the first of the year and looking to buy a house as soon as possible. I was hoping someone here could tell me about how much insurance would be for a $150,000 house and what all insurance i would need.
Good afternoon Brooks,
I have been doing a lot of research on this very subject recently myself. "IslandEd" answered one of my posts here, and I think he summed it up nicely:
Windstorm (Hurricane) Coverage is unbelievably high here. Very high for frame construction (if you can get it), a little better for mixed, and the least for all concrete. For a very, very general ballpark idea of what to expect to pay, take the purchase price times 80%, and that result times 3%, to get your annual premium. For new policies, everyone requires hurricane shutters as well. You can look at increasing your windstorm deductible from 2-3% to maybe 5% if the lender will allow it. Most FNMA lenders require a 2% deductible in their guidelines, but allow 3% because most insurers don't offer 2% so it is impracticable (yes, correct word) to demand it. Some local banks will allow even 10% deductible for windstorm. You can also look at increasing the other hazards deductible as well (as most insurers will quote you with a $500.00 deductible and you don't notice because you fell off your high heels with the windstorm portion). If you have a mortgage and you cancel your hazard/windstorm coverage, keep in mind that a lender will force place insurance on the property which is about 30% higher in cost. If you have a high loan-to-value mortgage, this will not be in your best interests. If you have a low balance, it may be preferable, but it only covers the lender and will not pay for reconstruction. I haven't heard anything yet, but I can't imagine we won't have a significant increase in premiums due to Katrina and Rita.
I have also found out , that if you are paying cash for you home, you can self insure, or , partially self insure, your property.
Here are a few email links to local insurance companies where you can get a more specific quote:
I hope this helps,
Here is one more email link I found for a quote:
The size of the house also factors in as well. We were inquiring about a house that was overbuilt for the neighborhood, hence the price was lower than if it was in a different area. The insurance was based on square footage more than price.