The cost is generally as Donald Stevens quoted, $400-$800/year, but the insurance companies also take into account the track record of the home, and of the buyer. So, if that particular home had a claim in the last 3-5 years, or you, yourself, made a home insurance claim during that time, it would make a difference in the cost of the premium.
Two things happen during a transaction in relation to the premium. The first is the owner's disclosure on in conjunction with the Natural Hazard report. It's call a CLUE report and tells you the nature and amount of any recent insurance claim. CLUE reports are not mandatory, but you can ask for it in the disclosure package if the seller isn't already supplying it. The second thing is, during the inspection period, part of your due diligence is to call around to different companies with the address of the home and ask for a quote.... more