I prefer to be conservative when estimating costs and monthly payments. Right now, when I qualify a client and calculate the monthy payment, I’m using the following figures for homeowner’s insurance. These numbers are based on an average of what my clients have obtained for closings over the past two years. Certainly it is possible to locate insurance that is cheaper, and, on the contrary, more expensive. The final premium depends on the type and construction of the house and the amount of coverage required for the mortgage.
1 family: $1200 a year ($100 a month)
2 family: $1800 a year ($150 a month)
Although for some two family homes I might increase the estimated premium to $2400 if it’s a larger house, or a brownstone.