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They're all located in Tornado Alley — a region of the country that sees frequent tornadoes and hailstorms throughout much of the year. Below is the monthly and annual average home insurance cost by state and how it compares to the national average. The average annual rate for a home with $400,000 in dwelling coverage and $300,000 in liability and $1,000 deductible is about $3,231, according to a rate analysis by Insure.com. But rates vary significantly from state to state and from city to city. Alani Asis is a Personal Finance Reviews Fellow who covers life, automotive, and homeowners insurance.
For instance, the average price of homeowner’s insurance is the highest in Oklahoma at $4,445 while people in Hawaii pay the least, at $499. If you’re buying a new home, purchase a home insurance policy before closing. That way, your valuable possession will be protected the moment you sign on the dotted line. Homeowners policies are customizable, enabling you to increase coverage for your home's structure or your personal belongings. As licensed insurance agents, we do this by taking a more informal approach to how we write and talk about insurance so that the everyday person can be empowered to grab their future by the horns.
Compare Your Homeowners Insurance Options
Few standard homeowners insurance policies cover dwelling or personal property damages caused by earthquakes. However, following a quake, earthquake insurance can help offset the cost of repairing or rebuilding your home, replacing damaged personal property, and temporary housing. Homeowners living in areas prone to earthquakes need earthquake insurance. Homeowners insurance policies don’t come in one-size-fits-all packages.
You can find local construction costs by speaking to local companies. Also known as additional living expenses, loss of use insurance pays for extra costs you incur if you’re unable to stay in your home due to a problem covered by your policy. Expenses could include hotel costs, restaurant bills and services, such as boarding a pet. Loss of use coverage is generally set at 10% to 30% of your dwelling coverage limit. Even if the cost of living in your area is cheaper, the homeowners insurance may be pricier due to the year-round risk of natural disasters, such as flooding and tornadoes. Each homeowners insurance company sets its rates, which means that the average home insurance cost will vary from carrier to carrier even within the same state and ZIP code .
Other structures
Homeowners insurance companies offerdiscounted ratesfor everything frombundling your home and auto policies, to working in a certain profession , to paying your premiums up front for the year. Policy deductibles are the amount you pay out of pocket for every claim you file before your insurance company kicks in to cover the rest. For a policy with $300,000 in dwelling coverage, according to Policygenius's 2022 analysis of home insurance rates in every U.S. state and ZIP code.
Home insurance costs don’t just depend on what state or city you live in — rates are calculated all the way down to your house’s ZIP code. If you live in a neighborhood that experiences frequent home break-ins or wildfires, you’ll likely see higher home insurance premiums. The least expensive ZIP code for homeowners insurance is in Honolulu, Hawaii, at $579 a year on average.
Recommended Personal Property Coverage Amounts
Policygenius Inc. (“Policygenius”), a Delaware corporation with its principal place of business in New York, New York, is a licensed independent insurance broker. The information provided on this site has been developed by Policygenius for general informational and educational purposes. We do our best to ensure that this information is up-to-date and accurate. Any insurance policy premium quotes or ranges displayed are non-binding. The final insurance policy premium for any policy is determined by the underwriting insurance company following application.
Helpful life insurance agents, who can assist you in servicing your policy, are just a phone call away. It covers minor injuries to people who aren’t household members—for instance, a guest who slips on icy steps. The amounts for medical payments coverage typically range from $1,000 to $5,000.
How can you reduce the cost of your homeowners insurance?
These rates were publicly sourced from insurer filings and should be used for comparative purposes only — your own quotes may be different. On the other hand, increasing the square footage of your home could get you higher premiums. When you click "Continue" you will be taken to their website, which is not owned or operated by GEICO. GEICO has no control over their privacy practices and assumes no responsibility in connection with your use of their website. Any information that you directly provide is subject to the privacy posted on their website. If you rent an apartment, condo, house, etc., you need renters insurance.
Personal property protection ensures you receive the necessary compensation to replace or repair those items. While you have plenty of options to choose from, the right policy protects at a reasonable price. Get peace of mind knowing you’ve protected it with homeowner’s insurance. The most popular type of homeowners policy form is the Special Form, commonly called HO-3.
The table below provides a look into the average annual cost of home insurance in different cities across the U.S. and how it compares to the state average. All rates are based on the above coverage limits except where otherwise noted. When analyzing costs for different coverage levels and risk factors, we changed just one variable at a time to ensure the rates we’re comparing are fair and representative of the factor at hand. The average rate for a house with $200,000 in dwelling coverage is about $2,233 for $300,000 in liability. For example, if a tree fell through your house and destroyed your couch, a replacement cost policy would pay whatever it costs to replace the couch. But a cash value policy would only pay what the couch is worth today.
For example, suppose all of your appliances are destroyed during a storm and have an estimated total value of $20,000 but only have coverage worth up to 100 grand left on their policies. In that case, that’s just how much more money will get repaired or replaced after this unfortunate event has occurred. So if it gets damaged during a storm, your insurance agency won’t pay out anything above and beyond that amount . Since the more you shop around for quotes, the more likely it is that they won’t be able to keep up with all of the different quotes you’re obtaining.
Whereas – Rosenberg, Texas – is the most expensive ZIP code for home insurance. Its average annual rate is $6,638 per year, over $6,000 more expensive than the least expensive ZIP code. Oklahoma remains the most expensive state for homeowners insurance in the United States for another year. Its average annual rate is 61% higher than the national average home insurance cost. Once you figure out how much homeowners’ insurance you need, it’s time to find the price you want. Shopping around is easier than ever with Gabi as you can compare homeowners insurance rates from a wide variety of insurers online, all in one place.
Geographic location typically impacts your insurance rates because every area of the country has a different risk level for potential damages. Some areas may have a higher risk of wind damage, for example, while other areas of the country often sustain damage from fires. Every home is different, which means insurance companies rate each home on a case-by-case basis. Your home’s specific characteristics will play a role in determining how much you pay for homeowners insurance. Did you pass down your prized heirloom to a grandchild or sell off a bunch of personal belongings?
Sure, your mortgage company requires it, but you’re the one that truly needs it and will benefit from the coverage. Homeowners insurance protects your biggest assets—your home and belongings. For example, suppose one year ago you paid $500 for an appliance or piece of furniture, and today it has significantly more value because it’s older than one year. In that case, this item will only be covered up to $500 by your home insurance policy. To estimate the cost of your home insurance, you’ll need to request quotes from home insurance companies. As a rule of thumb, most policies have a limit of 30% of the dwelling coverage.
Meanwhile, our sample West Virginia home was built in 1974 and has $119,500 of dwelling coverage. We used median home values to approximate the rebuild cost in each state. The states with the highest home insurance costs are generally where natural disasters occur most frequently.
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