Homeowners Insurance Costs on Average (2021)

The estimated price of homeowners insurance coverage is $1,445 per year, or $120 per month — but the cost of coverage varies substantially depending on state regulations, the location of your property, and the cost to rebuild.

The cost of house insurance has steadily increased across the country. According to the National Association of Insurance Commissioners, home insurance rates have increased by about 47 percent in the last decade. We did some research to determine which states are the most and least expensive to help you comprehend the market.

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

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The states with the highest homeowner insurance premiums

Homeowner's 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 expensive to the least expensive states for home insurance.

Individual state averages are based on the median home 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 factors, including the specific house insurance risks for each state, the amount of coverage purchased by the average homeowner in each state, and several 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 are 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 home values, or both. According to our estimations, the average cost of insuring a typical home 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 plans will differ, but most will include four standard coverages: Dwelling coverage pays for the cost of repairs or replacement if your home's structure is damaged by a covered incident. Coverage may pay for the following types of damage:

• Roofing.

• Walls.

• Floors.

• Foundation.

• Built-in appliances.

• 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 will almost certainly contain coverage for:

• Furniture.

• Clothing.

• Electronics.

• Jewelry.

Liability coverage addresses your legal responsibility for causing property damage or bodily harm to others. This could 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 expenses 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 while living in temporary housing

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

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

What factors influence your house insurance premiums?

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

Home insurance rates are influenced by factors beyond your control.

• The age of your house. Older homes 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 factored into your annual premiums by your insurer.

• Your animals. Liability insurance protects your guests from any injuries caused by your dogs, and if you have a particularly aggressive breed as a pet, you may have to pay higher insurance fees.

• Extraordinary features. A hot tub, swimming pool, or trampoline may seem like a perk to you, but your insurance sees it as an "attractive nuisance" that could endanger any possible guests. If your home has these features, you'll have to pay more 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 because it covers the expense of completely reconstructing your property. It is the more expensive option, but it ensures that your insurance payout will not be reduced as your home ages and loses value.

Your personal property and liability coverage limits. Standard liability coverage often starts at $100,000.Increasing either of these coverages will result in higher premiums.

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 premiums may be affected if you make alterations to your home. Home security upgrades, such as 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 premiums.

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 bundling 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 lower 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 roofs

• 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 being at home more often reduces your chances of being robbed.

Frequently asked questions

What are the key elements that influence the cost of house insurance?
The three main 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 home located along 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 depends on the type of coverage you purchase, but in general, homeowners insurance covers liability, damage to your home's structure, and damage to your 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?
Many homeowner's insurance plans offer a list of perils that are covered (sources of damage). The most common dangers include fire, wind, robbery, vandalism, freezing, and vehicle damage. Some plans are "open hazards," which means they cover everything that isn't expressly excluded.

Methodology

We gathered house insurance quotes from the largest 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 house insurance premium in the United States. For each state average, we obtained quotes corresponding to the median property age and value in that state. 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 home values.

The insurance rate data utilized in Online Insure quotes analysis came from Quadrant Information Services. These rates were obtained publically from insurer filings and should only be used for comparison purposes – your quotations may differ.