The most expensive states for homeowners insurance
Homeowners insurance costs an average of $1,445 annually, but premiums vary greatly by state, from $598 annually in the least expensive state to $2,559 annually in the most expensive state.
We collected thousands of homeowners insurance quotes and calculated the average premium for each state. The following table shows our findings, from the most expensive to the most affordable states for home insurance.
What factors impact your home insurance rates?
Insurers look at many variables when pricing a policy. These are either fixed factors that are unchangeable, like the year your home was built, or adjustable factors you can control, like whether your roof is weatherproof.
Factors out of your control that affect home insurance rates
- Your home’s age. Older homes are more likely to have structural wear and tear that increases risk and thus increases your premiums.
- The materials used to build your home. Certain materials are more vulnerable to fire, termites, rotting and other dangers than others. Homes with metal or tile roofs, for instance, will likely incur lower insurance rates than homes with asphalt roofs.
- The location of your home. Live in an area with high crime rates, with stormy weather or far away from a fire department? Your insurer will factor these and other risks into your annual premiums.
- Your pets. Liability insurance covers any injuries your guests sustain from your pets, and if you have a particularly aggressive breed as a pet, you may pay higher insurance premiums.
- Special features. You might see a hot tub, swimming pool or trampoline as a perk, but your insurer views it as an “attractive nuisance” that poses a hazard to any potential guests. If your home includes these features, you’ll pay more for insurance.
Factors in your control that affect home insurance rates
- Claims history. Your personal claims history indicates how likely you are to file a claim in the future. The more claims made, the higher your rates.
- Your dwelling coverage limit. While this number is closely related to the value of your home, you will likely still need to decide whether to purchase replacement cost value (RCV) coverage or actual cash value (ACV) coverage. We generally recommend RCV, as it covers the cost of rebuilding your home from the ground up. It is the more expensive choice, but it guarantees that your insurance payout won’t be lowered as your home ages and depreciates in value.
- Your coverage limits for personal property and liability. Standard liability coverage generally starts at $100,000. Increasing either of these coverages will cost you more in premiums.
- Your deductible. This is the amount of money you must pay out of pocket before your policy begins paying out your claim. Choosing a higher deductible means lowering your potential benefit, which makes your policy less valuable and therefore cheaper.
- Renovations to your home. Making changes to your home could affect your premiums. Improvements that make your home more secure, such as strengthening the roof or installing a security system, could lower your premiums. Conversely, increasing the square footage of your home could get you higher premiums.
- Your credit score. Insurers view a good credit score as a sign of financial stability and reward you with lower rates. While improving your credit score certainly takes time, it can help you secure more affordable premiums across a number of insurance products.
Home insurance discounts offer a variety of ways to save on home insurance rates, including discounts for bundling your auto and home insurance purchases together and for home safety features such as a central alarm system.
How can you reduce the cost of your homeowners insurance?
The best, easiest way to reduce your homeowners insurance cost is to get quotes from multiple insurers. It’s especially easy to do this when your policy is up for renewal or if you’ve made major changes to your policy.
Another option is to lift your deductible — the quantity you pay before insurance kicks in — since a higher deductible directly results in a lower premium. However, you should only lift your deductible to an quantity you can cover if you experience a loss. If you could not afford an unexpected $5.000 expense, you should hold your deductible below that amount.
Lastly, be sure to ask after homeowners insurance discounts. While discounts vary from company to company, some common ones include:
- Multi-policy discounts for bundling home and auto insurance
- A loyalty discount, particularly for customers who have remained claim-free
- A discount for hail-resistant roofs
- A discount for security technology, such as smart smoke alarms, a lightning protection system or a central alarm system
- A discount for retiring, as being at home more often decreases your likelihood of experiencing a burglary
Frequently asked questions
What are the main factors that affect how much home insurance costs?
The three main factors that affect residence insurance cost are your home’s location, how much it’s insured for and how susceptible it’s to damage. For example, a residence located along the coast would’ve higher insurance costs than one that’s inland, and a residence made with expensive or delicate materials costs more to insure than one made with more affordable or sturdy materials.
What is covered by homeowners insurance?
It depends on what kind of policy you buy, but in common homeowners insurance covers liability, damage to the structure of your residence and damage to your personal property. Liability coverage pays for damages to others if you are deemed responsible.
What sources of damage are covered by homeowners insurance?
Most homeowners insurance policies have a list of perils (sources of damage) that are covered. The most common perils comprise fire, wind, theft, vandalism, freezing and damage vehicles. Some insurance policies are “open perils,” which means you are covered for everything that’s not explicitly excluded.