 TITLE: Do You Have to Have Homeowners Insurance? CONTENT: How Much Does Homeowners Insurance Cost?\n----------------------------------------\nThere are few major factors that determine the cost of homeowners insurance policy. The most weighty is the state you live in. According to a study published last year by the National Association of Insurance Commissioners, the average premium cost for the most common type of homeowners insurance in 2017 was $1,211. However, by state, the highest average for a policy in 2020 is Louisiana, at $1,968. Oregon, on the other hand, has the least expensive coverage, averaging just $677.\nYour credit-based insurance score may also be a consideration. These scores, such as Attract™ scores developed by LexisNexis® Risk Solutions and FICO's credit-based insurance scoring model, are designed to predict the likelihood that you will file an insurance claim. Credit-based insurance scores, like traditional credit scores, focus on your past activity, such as payment history, credit utilization ratio and delinquent accounts. Using such scores to adjust the cost of a policy is legal at the federal level, but some states restrict their use for homeowners insurance policies. Currently, these include California, Maryland, Massachusetts and Oregon.\nThe deductible is another factor that can affect your premium. The higher it is, the lower your premium will be. Most insurers offer a minimum deductible of $500 or $1,000. A higher deductible may make for more affordable payments, but you risk having to come up with more cash out of pocket before the insurer pays out if you file a claim.\nBecause homeowners insurance can be a major line item in your budget, take steps to reduce the cost without sacrificing proper coverage:\n*   **Improve your credit reports and scores****.** If you live in a state where insurance policies can be credit-contingent, review your credit reports before pursuing a policy. If your report contains accounts in collections, past-due accounts or excess revolving debt, that negative information may be dragging down your insurance scores. Take action to get caught up on your payments, reduce your debt and pledge to make all payments on time going forward.\n*   **Raise your deductible.** Because low deductibles usually result in high insurance premiums, consider raising that threshold if you feel comfortable handling a large deductible.\n*   **Shop around.** Many companies provide homeowners insurance, so be sure to get several quotes before deciding on one.\n*   **Seek discounts.** Insurers typically offer policy discounts if you pay your annual premium in full up front, or for bundling it with other policies, like auto insurance.\nA homeowners insurance policy might be required, but it's something you have some control over. Go for the most comprehensive policy you need and can afford, and then review the policy with your insurer annually so you know you're getting the best for your current situation. Before you do, obtain a free copy of your credit report and FICO® Score☉ from Experian. If your creditworthiness has improved, you'll want to point it out, especially if the policy you have was based on your previous credit rating. END