Homeowners Insurance Costs on Average

The average cost of homeowners insurance in the United States is $1,445 per year and $120 per month — but the cost of coverage varies greatly depending on state rules, your home's location, and the cost to rebuild.

The cost of house insurance has gradually increased across the country. According to the National Association of Insurance Commissioners, home insurance prices have increased by about 47 percent in the previous decade. We performed some research to determine which states are the most and least costly to assist you to comprehend the market.

Read on to learn more about our results, or input your ZIP code in the widget above to compare homeowners insurance prices in your region.

The States With The Highest Homeowner Insurance Premiums

Homeowners insurance costs an average of $1,445 a year, but premiums vary greatly by state, ranging from $598 in the least costly state to $2,559 in the most expensive.

We gathered hundreds of homeowner insurance quotes and determined the average cost for each state. The table below summarises our findings, ranging from the most costly to the least expensive states for house insurance.

Get The Best Home Insurance in your Location

Individual state averages are based on the median house value in each state, which we used to estimate the cost of rebuilding the property.

Differences in state averages are caused by a variety of variables, including the specific house insurance risks for each state, the amount of coverage purchased by the average homeowner in each state, and numerous more.

Your rates may also differ dramatically from the state average. Continue reading to find out which states pay the most and least, as well as what variables insurers examine when determining your costs.

Which States Have The Highest House Insurance Premiums?

Natural catastrophes occur most frequently in the states with the highest home insurance prices. Tornadoes in Oklahoma and Kansas have pushed average rates in those states far higher than the national average.

The top five most expensive states for house insurance include Texas, South Dakota, and South Carolina. According to our statistics, homeowners in these five states pay 68 percent more in insurance premiums per year than the average U.S. citizen.

Which States Have The Lowest Pay?

Delaware, Vermont, Pennsylvania, and New Hampshire have the lowest house insurance rates. These states are less prone to big calamities like hurricanes, have lower house prices, or both.

According to our estimations, the average cost of insuring a typical house in these states is less than $667 per year. On average, homeowners in these states pay 54% less than the national average.

What Is The Scope Of Homeowners Insurance?

If you want to minimize your premiums, you must first understand what your homeowner's insurance policy covers. Individual insurance will differ, but most will include the following four basic coverages:

If the structure of your house is destroyed by a covered event, Dwelling coverage will pay for the cost of repairs or replacement. Coverage may pay for the following types of damage:

•Roofing

•Walls

•Floors

•Foundation

•Appliances that are built-in

•Structures such as garages, sheds, and other outbuildings (usually)

Personal property coverage protects your home's contents from harm caused by a covered danger. A basic HO-3 would almost certainly contain coverage for:

•Furniture

•Clothing

•Electronics

•Jewellery

Liability coverage addresses your legal responsibility for causing property damage or physical harm to others. This might include:

•Legal fees incurred if your dog hurts a visitor and you are sued

•You will suffer legal fees if your tree falls and destroys your neighbor's roof.

•If you shatter your neighbor's window while playing ball, you must pay for the repairs.

Loss of use coverage pays for any out-of-pocket expenditures you incur while living away from your home when it is rendered unusable due to a covered danger. These may include:

•The cost of staying in a hotel or motel.

•Meal expenses when living in temporary housing.

•A cost for running a credit check in order to rent out a temporary house.

•Transportation compensation for additional miles to and from work.

What Variables Influence Your House Insurance Premiums?

When pricing an insurance, insurers consider a variety of factors. These are either permanent characteristics that cannot be changed, such as the year your home was constructed, or variable factors that you can manage, such as whether your roof is waterproof.

Home Insurance Premiums Are Influenced By Factors Beyond Your Control.

The age of your house Older houses are more likely to have structural wear and tear, which raises the risk and, as a result, your rates.

The materials utilized to construct your home Certain materials are more susceptible to fire, termites, decay, and other hazards than others. Homes with metal or tile roofs, for example, will almost certainly have cheaper insurance rates than those with asphalt roofs.

Your house's location Do you live in a high-crime area, in bad weather, or far from a fire station? These and other risks will be included in your annual rates by your insurer.

Your animals Liability insurance protects your visitors from any accidents caused by your dogs, and if you have a particularly violent breed as a pet, you may have to pay higher insurance fees.

Extraordinary characteristics A hot tub, swimming pool, or trampoline may seem like a bonus to you, but your insurance sees it as an "attractive nuisance" that might endanger any possible guests. If your house has these characteristics, you'll have to pay extra for insurance.

Home Insurance Premiums Are Influenced By Factors Within Your Control.

History of claims Your personal claim history suggests the likelihood that you will file a claim in the future. The more claims you file, the higher your rates will be.

Your coverage limit for your home. While this figure is directly tied to the worth of your house, you will most likely need to choose between replacement cost value (RCV) and actual cash value (ACV) coverage. We normally recommend RCV since it covers the expense of completely reconstructing your property. It is the more expensive option, but it ensures that your insurance payment will not be reduced as your property ages and loses value.

Your personal property and liability coverage limitations In most cases, standard liability coverage begins at $100,000. Increasing either of these coverages will result in higher rates.

It's your deductible This is the amount of money you must pay out of pocket before your insurance company will start paying out on your claim. Choosing a greater deductible reduces your potential benefit, making your coverage less useful and hence less expensive.

Home improvement projects Your rates may be affected if you make alterations to your house. Home security upgrades, like reinforcing the roof or adding a security system, may cut your premiums. Increasing the square footage of your property, on the other hand, may result in higher rates.

Your credit rating Insurance companies consider a strong credit score as an indication of financial stability and will reward you with cheaper premiums if you have one. While boosting your credit score takes time, it can help you achieve lower premiums on a variety of insurance products.

Home insurance discounts include discounts for combining your car and home insurance purchases together as well as savings for home safety measures such as a central alarm system.

How Can You Save Money On Your Homes Insurance?

Obtaining estimates from various insurers is the simplest and most effective strategy to minimize your home's insurance costs. This is especially straightforward to do when your policy is due for renewal or if you've made significant modifications to it.

Another alternative is to increase your deductible, which is the amount you pay before insurance kicks in because a greater deductible results in a cheaper premium. However, you should only boost your deductible to an amount that you can afford to pay if you suffer a loss. If you couldn't afford a $5,000 unexpected bill, maintain your deductible below that amount.

Finally, make sure to inquire about homeowner's insurance discounts. While discounts differ from one firm to the next, some frequent ones are as follows:

•Discounts for combining house and vehicle insurance policies

•A loyalty discount, especially for clients who have not made any claims.

•A reduction for hail-resistant roofing

•A reduction in the cost of security technologies such as smart smoke alarms, a lightning protection system, or a central alarm system.

•A discount for retiring, because staying at home more often reduces your chances of being robbed.

Commonly Asked Questions

What Are The Key Elements That Influence The Cost Of House Insurance?

The three primary elements that influence house insurance costs are the location of your property, the amount of coverage you have, and the vulnerability of your home to harm. A property located by the ocean, for example, would have greater insurance prices than one located inland, and a home built with expensive or delicate materials would cost more to insure than one built with more economical or robust materials.

What Does Homeowners Insurance Cover?

It varies on the type of coverage you choose, but in general, homeowners insurance covers liability, damage to your home's structure, and damage to your personal goods. If you are found to be at fault, liability coverage will compensate for the harm caused to others.

What Kind Of Harm Are Homeowners Insurance Policies Designed To Cover?

Most homes insurance plans include a list of covered dangers (sources of harm). The most typical hazards include fire, wind, theft, vandalism, freezing, and car damage. Some insurance plans are "open hazards," which implies they cover everything that isn't expressly excluded.

Methodology

We gathered house insurance quotes from the biggest homeowners insurance providers in each state for every residential ZIP code in the United States, then calculated the average for each state. We then summed these state averages to determine the average home insurance price in the United States.

We gathered quotes relating to the median house age and value in each state for each average. Our California sample home, for example, was built in 1975 and insured for $509,400. Meanwhile, our hypothetical West Virginia home was built in 1972 and is insured for $119,800. We estimated the reconstruction cost in each state using median house prices.

The insurance rate data utilised in ValuePenguin's study came from Quadrant Information Services. These prices were obtained publically from insurer filings and should only be used for comparison purposes – your individual quotations may change.