How Much Is Average Home Insurance – If you’re looking for ways to save money right now, you can start by looking at how much you spend each year on home insurance. According to our latest Map, the price of home insurance depends on where you live.
We found our map information on the cost comparison site Insurance.com. There are a few assumptions behind the data in our map. Imagine a married couple with excellent credit wants to insure a $300,000 home with standard coverage features like a $1,000 deductible and $5,000 guest health insurance per person. We calculated the average cost of insurance for each state and then created a color-coded map based on how much each state’s cost is higher or lower than the national average. It allows you to easily see both relative and absolute average homeowner insurance costs across the country.
How Much Is Average Home Insurance
Our map has two interesting insights into the home insurance market. First, the Most Expensive States are located along the Gulf of Mexico in the south and extend into Tornado Alley. Oklahoma is by far the most expensive state in the country at $4,445 per year, which is 92.8 percent above the average. If you draw a straight line from Montana to Florida, each state has a higher than average interest rate. That’s because geography is the single biggest factor in natural disasters like hurricanes, tornadoes, and avalanches that destroy property and drive up insurance premiums.
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Another interesting insight is how home insurance is relatively affordable on both coasts. Vermont is the least expensive in the Northeast at just $1,212, or just over $100 a month. And check out California, where the average price is just $1,166. Keep in mind that we assumed a starting home value of $300,000 to arrive at these numbers, making this an apples-to-apples comparison. We know that $300,000 goes a lot further in some states than others.
But here’s the most important thing to remember about home insurance: it only provides protection against certain things or perils, like fires and tornadoes. Most of the insurance policies on the market do not provide coverage for earthquakes or floods. These types of natural disasters completely devastate the property and casualty insurance industry. For this reason, other separate policies are available in states like California, where the government mandates earthquake coverage for certain residents and requires new buildings to meet strict earthquake mitigation codes. Companies simply won’t provide this type of protection if the law doesn’t require it.
If you’re planning to buy a home for the first time or even just save some money in your budget, check out our home insurance cost guide. And if you’re still a renter, check out our renter’s insurance cost guide.
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If your home is damaged in a fire, crime, or other unexpected event, home insurance will usually pay to repair or replace your home in many cases.
The price you pay for your insurance can vary greatly depending on a number of factors, including where you live. This article covers these factors as well as the average cost of home insurance.
According to data from the National Association of Insurance Commissioners, the average cost of home insurance in the United States is $1,251 per year, or $104.25 per month.
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This number has increased in recent years. This is due to increased home repair and rebuilding costs, higher disaster losses from extreme weather, and more people moving into disaster areas.
The actual cost of your home insurance can vary greatly depending on the type of policy you choose, your location, and many other factors.
According to the National Association of Insurance Commissioners, the average cost of home insurance in the United States is:
The most expensive states for housing are located on the Gulf Coast, which is particularly prone to hurricanes. All three states have been hit hard recently, costing homeowners billions.
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The three states with the cheapest home insurance are not in areas traditionally prone to hurricanes or tornadoes. Their premiums are less than half the average premium in the most expensive states.
Home insurance usually has a home insurance limit, or the maximum amount the insurance company will pay to repair or replace a damaged home. More expensive homes must purchase a higher home insurance policy, which can have a greater impact on your premiums.
According to the National Association of Insurance Commissioners, the average cost of home insurance by policy amount is:
If any of the average rates give you sticker shock, remember that it’s possible to lower costs when shopping for home insurance. Consider these strategies:
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Read answers to some of the most common questions about home insurance here.
The cost of your home insurance can increase over time for a number of reasons, some of which are related to your home. Your home insurance can also become more expensive as your home ages, for example, because older homes are more prone to damage. You may face higher insurance premiums if you’ve filed homeowner’s insurance claims, even if they’re problems that weren’t your fault.
Factors outside your home can also affect the price increase. One of them is inflation: the cost of construction, materials, and other things needed to repair or renovate your home increases over time, as does your insurance. Your policy may automatically increase its coverage (and possibly its cost) to keep pace with general inflation. Home insurance premiums in your area may also increase if your city has recently experienced an unusual number of natural or other disasters.
Yes, sort of. You usually don’t pay your home insurance company directly for your policy. Instead, you pay for your home insurance as part of your monthly mortgage payment, and your lender holds the money in an escrow account and pays the premiums for you. This way, the lender can ensure that your home insurance is paid on time, which protects both their investments and yours. If the price of your home insurance goes up, so will your mortgage payment.
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Home insurance policies usually specify when damage to your home is covered and when it is not. (This usually depends on what caused the damage.) In most cases, insurance covers fire or storm damage, but not flood or earthquake damage. Your insurance may cover damage caused by hail or wind.
Home insurance usually does not cover wear and tear. Vehicles are usually not covered, even if they break down in an incident that damages your home, and neither are your pets.
You can usually find what your insurance doesn’t cover in the “exclusions” section, or you can talk to your insurance agent about it. Keeping your home safe comes at a price. But in some states, you may be out of luck with your home insurance premium.
Finding the ideal home is more than just buying the perfect home. Many homeowners looking to protect their property from disasters such as theft or weather damage know the importance of finding quality home insurance. However, home insurance is not always cheap. According to the National Association of Insurance Commissioners, home insurance premiums rose 1.6 percent from 2016 to 2017, reflecting the increase in home insurance costs. Despite this upward trend, some states have managed to keep premium costs relatively affordable.
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Insurance companies use several variables to determine your home insurance policy. Determining a home’s liability based on its occupants and surroundings means home insurance rates can vary based on typical weather conditions in the area, the likelihood of theft or other property damage such as vandalism. To dive deeper into the analysis of homeowner insurance premiums and geographic demographics, the data science team pored over home insurance data to identify the ten states with the lowest home insurance rates.
A Site to Compare Homeowners Insurance’s data science and research team examined homeowner data from the Insurance Information Institute to find out which states have the cheapest home insurance. HO-3 Homeowner Package Policy Data (for owner-occupied homes with one to four family units) issued by the National Association of Insurance Commissioners (NAIC).