Last Updated on September 29, 2020 by Andrew Lee
Virginia, with a population of 8,185,131 according to Livability, remains the leader in terms of having the greatest number of workers in the technology sector. However, the state also boasts of a continuously-thriving agricultural industry. These, combined with all of its other amazing features, such as a great educational system, peaceful neighborhoods, and natural beauty, are just some of the reasons 67% of all homes here are owned.
Because more than half of the residential properties in VA fall under the owned category, you should no longer wonder why the state’s residents highly value their Virginia homeowners insurance policy. And as one of these individuals, you should take the time to know what influences your premiums, to make certain you get the most out of your insurance-related expenditures.
Making sure you get the most out of what you’re paying for
As the Commonwealth of Virginia’s Bureau of Insurance cited, a homeowners insurance policy plays a huge role in the lives of its residents, since it can prevent financial disasters. Although having this in your arsenal won’t put a stop to disasters, it can considerably decrease your risks of getting into financial difficulties in the event you suffer from major damage or loss. Your premiums – the money you spend on your policy – can give you an idea of whether or not you have adequate coverage.
VA Homeowners paid an average of $805 in insurance premiums compared to the average of $952 nationwide
It’s important for you to learn about these numbers because you want to make certain the money you’re spending goes towards something you can really use in the future. In addition, this will help you prevent overinsuring, which only leads to waste of money, as well as underinsuring, which can lead to higher than necessary out of pocket expenses.
The Variables Influencing Your Premiums
There are many different factors that contribute to the overall payment you make towards your Virginia homeowners insurance policy. To give you a clearer picture, here are just some of the biggest premiums-related influencers:
- The specific type of policy you have. For people who own and live in their homes, the two policy types available to them include the Broad Form (Named Peril) and the Special Form. The latter provides the greatest number of coverages, which is why it costs more.
- The limits for each coverage. Homeowners insurance policies in Virginia have two distinct types of coverage: Property Damage Coverage (dwelling, other detached buildings, personal property, and additional living expenses) and Liability Coverage (personal liability and medical payments). The higher the limits you set on each of the subcategories, the greater coverage and more protection you have. So it follows you’ll pay more towards your premiums.
- Whether you have insurance against the excluded perils. All homeowners insurance policies exclude specific types of perils, the most common of which include flooding, wars, earthquakes, and nuclear accidents. Without this, you’ll pay less, but you won’t get protection against them. The damage and losses you may incur when any of these happen are far greater than years of premiums payments combined.
Key Facts and Market Trends in Virginia: In a 2013 study from the National Association of Insurance Commissioners (NAIC) showed that VA homeowners paid less than the national average of $1,096. During this year, the average premiums in the state amounted to $911.
The bottom line
Getting to know homeowners insurance premiums better will help you realize just how important it is to have the right coverages included in your policy. This is especially true since excluded perils, such as a flood, can happen anytime. With adequate insurance, you can prevent shockingly high out of pocket expenses to cover repairs or replacements. To learn more about how to insure your home, read this article: Homeowners Insurance Essentials.