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If you own a home, it’s important to consider investing in homeowners insurance. A comprehensive home insurance policy provides valuable protection for your finances if your home and personal belongings are damaged or destroyed due to a covered loss, like a fire, home break-in or severe storm. As of 2020, data shows that 93% of homeowners have an active homeowners insurance policy.

While home insurance is not legally required (unlike auto insurance), many mortgage lenders require customers to obtain coverage. The cost of home insurance is dependent on a variety of personal factors, like your state, the cost to rebuild your home and your claim history, but getting multiple rate quotes can help you find the cheapest home insurance policy for your situation.

Homeowners insurance claims and statistics

Claim statistics tell a compelling story about the importance of home insurance in the United States. Data also highlights the many factors that influence the type and frequency of claims in different parts of the country. Here are some recent home insurance claims statistics:

Insurance Home
  • According to a study, 6% of all insured homes had a claim in 2020. (Insurance Information Institute, Triple-I)
  • In 2020, 97% of all homeowners insurance claims were property damage claims. (Triple-I)
  • The majority of home insurance claims (45.5%) reported in 2020 were related to wind and hail damage, followed by fire and lightning damage (23.8%). (Triple-I)
  • In 2020, only 2.3% of all homeowners insurance claims were liability claims, the lowest rate since 2016. (Triple-I)
  • Between 2016-2020, the average property damage claim payout was $13,804. Fire and lightning claims had the highest average payout, which was $77,340. (Triple-I)
  • Data shows that liability insurance claims often have higher payouts than property damage claims. Between 2016-2020, the average liability insurance claim payout was $23,611. (Triple-I)
  • Homeowners insurance premiums have been slowly increasing in recent years. In 2019, the average home insurance premium increased by 1.8%, and in 2018, the average rate rose by 3.1%. (Triple-I)
  • As of 2020, an estimated 27% of homeowners in the U.S. had a flood insurance policy. However, the National Flood Insurance Program (NFIP) suggests that the actual number is much lower. (Triple-I)
  • Data shows that earthquake insurance is becoming more common, especially in western states. In 2020, 23% of homeowners said they had earthquake insurance. By comparison, only 15% of homeowners said they had this coverage in 2018. (Triple-I)
  • Only about 43% of homeowners have an inventory of their personal belongings, according to a 2020 report. (Triple-I)

Causes of property damage claims filed over time

Property damage claims are the most common type of home insurance loss. Most recently in 2020, wind and hail claims were the most common, followed by fire and lightning claims. Theft is consistently the least common type of property damage claim. However, the main causes of property loss have fluctuated over the last several years. In the table below, you can see the percentage of various property claims between 2016-2020.

Cause of property loss 2016
Percentages
2017
Percentages
2018 Percentages 2019 Percentages 2020 Percentages
Wind and hail 34.1% 47.0% 40.0% 38.1% 45.5%
Fire and lightning 26.0% 26.6% 26.2% 22.4% 23.8%
Water damage and freezing 28.7% 18.3% 23.9% 28.45% 19.9%
Theft 1.8% 1.0% 0.9% 0.9% 0.6%
All other property damage 5.7% 4.7% 6.5% 7.1% 7.9%

Source: Triple-I

Home insurance statistics state by state

Home insurance premiums are based on a variety of factors, but one of the biggest factors is where you live. The average cost of home insurance in the U.S. is $1,383 per year for $250,000 in dwelling coverage, but the rate you pay could be higher or lower based on your location and other factors.

For example, homeowners in southern states generally pay higher rates due to the increased risk of severe weather. On the other hand, homeowners who live on the west coast often pay lower rates because weather-related property damage claims are less likely. In the table below, you can see the average cost of homeowners insurance in all 50 states and Washington D.C., based on information Bankrate analyzed from Quadrant Information Services.

Average annual homeowners insurance premiums by state for 2022:

State Average annual premium for $250,000 in dwelling coverage
Alabama $1,597
Alaska $1,001
Arizona $1,216
Arkansas $2,104
California $1,084
Colorado $1,863
Connecticut $1,216
Delaware $681
Florida $1,648
Georgia $1,373
Hawaii $378
Idaho $858
Illinois $1,376
Indiana $1,180
Iowa $1,290
Kansas $2,800
Kentucky $1,820
Louisiana $2,009
Maine $944
Maryland $1,136
Massachusetts $1,274
Michigan $1,292
Minnesota $1,880
Mississippi $1,840
Missouri $1,647
Montana $1,752
Nebraska $2,849
Nevada $874
New Hampshire $731
New Jersey $775
New Mexico $1,939
New York $1,289
North Carolina $1,317
North Dakota $1,872
Ohio $1,119
Oklahoma $3,593
Oregon $704
Pennsylvania $786
Rhode Island $1,221
South Carolina $1,165
South Dakota $2,035
Tennessee $1,644
Texas $1,860
Utah $668
Vermont $668
Virginia $924
Washington $899
Washington, D.C. $897
West Virginia $1,089
Wisconsin $928
Wyoming $902

Most expensive states for home insurance

Not surprisingly, homeowners located in parts of the country that experience strong tropical storms, hurricanes and tornadoes commonly face some of the highest home insurance premiums. Based on homeowner insurance statistics, homeowners in Oklahoma pay the highest rates for insurance in the country. In the table below, you can see the most expensive states for home insurance and the average annual premium.

State Average annual premium for $250,000 in dwelling coverage
Oklahoma $3,593
Nebraska $2,849
Kansas $2,800
Arkansas $2,104
South Dakota $2,035

Least expensive states for home insurance

As one might expect, states that do not experience a high number of damaging weather events typically see more affordable home insurance. Many states have average rates below the national average premium, which is $1,383 per year. The table below highlights the cheapest states for home insurance and the average annual rate.

State Average annual premium for $250,000 in dwelling coverage
Hawaii $378
Utah $668
Vermont $668
Delaware $681
Oregon $704

Note that none of these five states experience significant repetitive weather events.

There are many factors that impact home insurance premiums, and conditions that can affect whether a rate will be higher or lower than the national average, even within the same state.

Similarly, premiums can vary significantly by ZIP code depending on crime patterns. Not only will your home insurance rates likely increase following a burglary to your own dwelling, but you may also pay higher rates if others in your neighborhood experience higher than normal rates of property crime.

Home insurance industry trends

The home insurance industry is constantly changing and evolving. Some of the biggest factors that are currently affecting the property and casualty insurance industry are economic changes, like inflation, and climate change, which is increasing the rate of natural disasters.

For example, many home insurance companies have stopped selling new policies to homeowners in Florida, given the high risk of severe storms and a state-wide issue with insurance fraud. As a result, getting homeowners insurance in Florida is becoming more difficult, and many homeowners are struggling to find companies to insure their homes.

In addition, inflation is causing home insurance premiums to increase in many U.S. markets. Data from S&P found that, between January 1, 2022 and May 18, 2022, home insurance companies were approved for rate increases in nearly every state. The states with the highest rate increases so far are California, Washington and Arizona, but that could change as new rate filings are submitted.

Homeowner statistics also indicate that many Americans are moving to areas with higher risks of severe weather and natural disasters. For example, data found that the 50 U.S. counties with the largest number of homes facing high heat risk saw population growths of 4.7 percent on average between 2016-2020. To offset the potential risk of a fire claim, home insurance companies often increase rates in these areas.

Average homeowners insurance cost by company

Although home insurance premiums are largely based on personal factors, rates will also depend on your home insurance company. Average rate data shows that some home insurance providers have lower rates than other insurers. This is why it’s important to get quotes from multiple companies before choosing a provider. Below, you can see the average cost of home insurance from some of the biggest and most reputable carriers in the industry.

Insurance company Avg. annual premium
State Farm $1,360
Allstate $1,300
USAA $978
Farmers $1,617
Travelers $1,202
American Family $1,105
Nationwide $1,075
Chubb $1,763
Erie Insurance $959
Auto-Owners $995

Of course, the actual premiums for any home insurance policy can vary significantly from these averages based upon all of the factors discussed above. Additionally, everyone looking for home insurance coverage should understand that their actual rates will vary based on all of these factors and the various discounts that may be available based upon individual circumstances.

Methodology

Bankrate utilizes Quadrant Information Services to analyze 2022 current rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Rates are weighted based on the population density in each geographic region. Quoted rates are based on 40-year-old male and female homeowners with a clean claim history, good credit and the following coverage limits:

  • Coverage A, Dwelling:$250,000
  • Coverage B, Other Structures: $25,000
  • Coverage C, Personal Property: $125,000
  • Coverage D, Loss of Use: $50,000
  • Coverage E, Liability: $300,000
  • Coverage F, Medical Payments: $1,000

The homeowners also have a $1,000 deductible and a separate wind and hail deductible (if required).

These are sample rates and should be used for comparative purposes only. Your quotes will differ.