I have been searching the net to see if I can get an average cost of home insurance but not finding much as they want me to give an address but I don't have one. I was also trying to find out if it is paid monthly or yearly. I saw some averages but it didnt say if it was a monthly or yearly payment.
Right now I am looking for houses in Montgomery County. Looking for 3bdrm, 2 bath place.
Other than that just trying to read up on different options in buying and other fees that can get tack on to the mortgage that I am not aware of.
Your cost will vary depending on the house value, your possessions (how much stuff you have that you want to insure), if you want any extras that aren't included in regular insurance, and the exact address (claim history on that particular house, yes, even if you haven't been living there yourself). Ours runs about $500/year, and we pay into escrow as part of our monthly mortgage payment. The loan company then pays the $500 out of our escrow to the insurance company once a year. We are in MoCo also. I don't know if this is close to the average or not, but it's about the same cost as for our previous house. I think you can get options where you don't pay it into escrow, but if I recall, it either costs more or the mortgage company dings you a fractional percent on your loan if you don't escrow it...either way it costs more if you don't.
If you don't put down at least 20% of the purchase price, you will have to pay private mortgage insurance. This is totally different than insuring your home and possessions for your benefit. It is insurance to the mortgage lender that you will pay your loan, as they don't have your 20% down payment as collateral. This totally varies with the price of the home. You pay it right along with your mortgage payment every month.
Don't forget all the taxes and fees you pay at settlement. These can add up to 10k-20k, maybe even more depending on the price of the home. Then there's the realtor's fees and the settlement attorneys fees...also paid at settlement. If you want any kind of home inspection, don't forget about the cost of those.
I have no idea how much homeowners insurance is in your area, but two types of people should be able to help you out: any local insurance agent or mortgage banker can probably give you a rough idea. My mortgage banker estimate about $50 a month when she gave me a good faith estimate, it was closer to $60 really. And you can call any insurance office, and ask to speak to someone about homeowners insurance-- you might want to give them some address in the neighborhood you're looking into, and they should be able to give you numbers. Also, I would call a local office of a company, vs. a national 1-800 #. They'll probably have more accurate info for you.
I pay around $65 per month, goes into an escrow account.