More on Home Insurance
Home Insurance Cost
How much does homeowners insurance cost?
How much homeowners insurance do you need?
Why did my homeowners insurance rates go up?
The average annual homeowners insurance premium is around $1,200, but costs vary widely from state to state and house to house.
Homeowners insurance costs around $1,200 a year on average
Factors like your insured limits, credit history, and home location impact how much you pay
Insurance companies offer discount opportunities for both weatherproofing and safeguarding your home
Selecting a homeowners insurance policy is one of the more important purchasing decisions you’ll make after finding a new home. Homeowners insurance protects your assets — the home itself, personal property within the home, and legal and medical bills if someone is injured on your property. It's also required by most mortgage companies before they’ll lend to you.
According to the National Association of Insurance Commissioners, the average annual homeowners insurance premium is $1,211. Homeowners insurance costs differ from state to state for a number of reasons. If a state has a lot of major cities and more densely populated areas, it’s more likely to have higher premiums, as home values are generally higher. States in areas with a higher incidence of natural disasters also generally have higher premiums than states that don’t match that criteria. Homeowners insurance premiums are also dependent on the age and rebuild value of your home and the insured limits in your policy.
IN THIS ARTICLE
|State||Average annual premium||State||Average annual premium|
|District of Columbia||$1,235||North Dakota||$1,253|
Want more information on the best companies and lowest rates in your state? Check out our state-by-state homeowners insurance guide.
Extreme weather is a common theme in states with high homeowners insurance premiums. Louisiana, Texas, and Florida are coastal states and are more susceptible to strong storms, and Oklahoma and Kansas are right in the middle of Tornado Alley.
On the flip side, you can get a bargain deal on homeowners insurance if you live in a state that experiences milder weather.
While we don’t advise moving somewhere strictly based on how high homeowners insurance premiums run, it’s helpful to understand why policies are cheaper in certain states and more expensive in others. As you can see, the following states aren’t likely to experience tropical storms and aren’t as prone to catastrophic tornadoes or other disasters.
Some insurance companies simply charge less for homeowners insurance than other companies. If you insure your home with a company intended for high-value homes owned by high-net-worth homeowners — like AIG or Chubb — you’ll pay more for coverage simply because the insurance products and customer service are more comprehensive and personalized than with a standard carrier like Travelers or Stillwater.
Certain insurance companies also have a different risk tolerance than others, and that can mean lower rates. For example, if they don’t insure homes with prior claims or homes at high risk of being damaged by a natural disaster, rates might be lower across the board.
Of the homeowners insurance companies offered by Policygenius, Stillwater quoted customers the lowest rates, while Chubb quoted customers the highest rates.
Average annual premium courtesy of Policygenius quoting data
Your homeowners insurance costs are largely determined by your home’s insured value, or the dwelling coverage limit in your policy. This is the part of your policy that reimburses you for covered damage to the structure of the home. The more dwelling coverage you have, the higher your homeowners insurance premiums will be.
Below is the average annual premium for homeowners insurance by insured value range.
|Insurance range||Average annual premium|
|$49,999 and Under||$681|
|$50,000 to $74,999||$761|
|$75,000 to $99,000||$830|
|$100,000 to $124,999||$875|
|$125,000 to $149,999||$914|
|$150,000 to $174,999||$954|
|$175,000 to $199,999||$990|
|$200,000 to $299,999||$1,081|
|$300,000 to $399,000||$1,242|
|$400,000 to $499,000||$1,466|
|$500,000 and Above||$2,164|
Similar to life insurance underwriting, your homeowners insurance company will examine potential risks when determining your rates. Some of these risks you have control over, and some are simply beyond your control.
Example of coverage limits in a standard HO-3 homeowners insurance policy
|Coverage type||Coverage limit example|
|Other structures coverage||$30,000 (10% of dwelling coverage)|
|Personal property coverage||$150,000 (50% of dwelling coverage)|
|Loss-of-use coverage||$60,000 (20% of dwelling coverage)|
|Medical payments coverage||$1,000-5,000|
Along with insurance bundles, loyalty discounts, and infrequent claims, you can also lower your homeowners insurance premiums by increasing the number of safety and security features in your residence:
Interested in reshopping into lower homeowners insurance rates? Shop right here with Policygenius. We’ll look at your policy, compare your coverage and cost with other insurers, and help you determine if you can get a better deal with another company.
The average cost of homeowners insurance is around $1,200 a year, but many factors play a role, including the details of your property and which state and city you live in. Louisiana has the most expensive home insurance, at an average of over $1,900 a year, and Oregon has the cheapest average home insurance at around $650 a year.
The replacement cost of a home can vary from company to company. Factors like your house's square footage, local construction costs, your roof, and even the style of the house can come into play. A licensed expert can help you make sure you get adequate replacement cost coverage.
Home insurance covers your home and personal property, along with providing liability protection and covering loss-of-use costs if your home is damaged and you need to stay in a hotel. Exact coverage will depend on your policy; fire, hail, theft, and burst pipes are typically covered, but earthquakes and flooding are not and require separate policies at an additional cost. Note that your coverage will only kick in after you meet your deductible, and a lower deductible will mean higher premiums. Check your policy and talk to an expert to find out exactly what coverage you have and need.
About the author
Pat Howard is an Insurance Editor at Policygenius in New York City, specializing in homeowners insurance. He has been featured on Property Casualty 360, MSN, and more. Pat has a B.A. in journalism from Michigan State University.
Policygenius’ editorial content is not written by an insurance agent. It’s intended for informational purposes and should not be considered legal or financial advice. Consult a professional to learn what financial products are right for you.
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