Acquiring insurance is an important aspect of homeownership. In the event of damage to your home, homeowners insurance is designed to prevent you from suffering financial devastation by providing reimbursement for some types of damages. According to 2020 data, the overall average annual premium for homeowners insurance is $1,477 based on a home with a dwelling coverage amount of $250,000.
No matter what the average premium may be in your state, understanding the various factors impacting your rates may keep you from overpaying for homeowners insurance. Factors such as the age of your home, your home’s value and characteristics, the specific coverages you choose, your claims history and your choice of insurance company all play a role in determining how much you pay for homeowners insurance.
How much is homeowners insurance by state?
How much is homeowners insurance? It depends, but the national average for home insurance is $1,477. However, geographic location plays a big role in your premiums. Some areas of the country are more prone to natural disasters, for example, while some areas may have higher rebuilding costs. The average rates in the table below can give you a guideline for how much you can expect to pay in your state for a home with a $250,000 dwelling amount.
| State | Average annual premium | % difference from average |
|---|---|---|
| Alabama | $1,917 | 30% |
| Alaska | $1,059 | -28% |
| Arizona | $1,304 | -12% |
| Arkansas | $2,302 | 56% |
| California | $1,101 | -25% |
| Colorado | $1,995 | 35% |
| Connecticut | $1,076 | -27% |
| Delaware | $589 | -60% |
| Florida | $1,736 | 18% |
| Georgia | $1,506 | 2% |
| Hawaii | $396 | -73% |
| Idaho | $936 | -37% |
| Illinois | $1,437 | -3% |
| Indiana | $1,252 | -15% |
| Iowa | $1,502 | 2% |
| Kansas | $3,019 | 104% |
| Kentucky | $1,888 | 28% |
| Louisiana | $2,297 | 56% |
| Maine | $982 | -34% |
| Maryland | $1,113 | -25% |
| Massachusetts | $1,258 | -15% |
| Michigan | $1,139 | -23% |
| Minnesota | $1,634 | 11% |
| Mississippi | $1,713 | 16% |
| Missouri | $1,961 | 33% |
| Montana | $1,770 | 20% |
| Nebraska | $2,787 | 89% |
| Nevada | $814 | -45% |
| New Hampshire | $709 | -52% |
| New Jersey | $810 | -45% |
| New Mexico | $1,545 | 5% |
| New York | $969 | -34% |
| North Carolina | $1,515 | 3% |
| North Dakota | $1,828 | 24% |
| Ohio | $872 | -41% |
| Oklahoma | $4,067 | 175% |
| Oregon | $776 | -47% |
| Pennsylvania | $809 | -45% |
| Rhode Island | $1,096 | -26% |
| South Carolina | $1,532 | 4% |
| South Dakota | $1,958 | 33% |
| Tennessee | $1,670 | 13% |
| Texas | $2,589 | 75% |
| Utah | $825 | -44% |
| Vermont | $681 | -54% |
| Virginia | $1,013 | -31% |
| Washington | $975 | -34% |
| Washington, D.C. | $930 | -37% |
| West Virginia | $1,003 | -32% |
| Wisconsin | $1,042 | -29% |
| Wyoming | $1,144 | -23% |
The most expensive states for homeowners insurance
Among other factors, insurance companies base rates on the actual and anticipated claims they pay following catastrophic events, including floods, hurricanes and tropical storms. It makes sense, then, that homeowners along the Atlantic and Gulf coasts often pay higher home insurance rates due to the frequency of devastating storms that cause widespread damage.
Additionally, homeowners in areas of the country prone to tornadoes and strong summer storms will see the risk of damage reflected in their insurance premiums. Homeowners in eastern Colorado, Kansas, Nebraska, Oklahoma, South Dakota and northern Texas tend to pay higher-than-average home insurance rates because they live in a region known as “Tornado Alley” which experiences frequent tornadoes. Homeowners in “Dixie Alley,” which encompasses the entire southeastern United States, also generally pay higher home insurance rates due to tornado risks.
| State | Average annual premium | % difference from average |
|---|---|---|
| Oklahoma | $4,067 | 175% |
| Kansas | $3,019 | 104% |
| Nebraska | $2,787 | 89% |
| Texas | $2,589 | 75% |
| Arkansas | $2,302 | 56% |
The least expensive states for homeowners insurance
Not only does location impact homeowners insurance rates, but the way the law is written in a particular state can have an impact as well.
For example, Hawaii has the lowest premiums in the country, but the policies work differently than policies in many other states. Most standard Hawaii home insurance policies do not cover hurricane damage. For maximum protection, many Hawaii homeowners purchase separate hurricane policies, which are not included in the average cost of home insurance data. Also, Hawaiian law does not allow insurance companies to rate insurance premiums based on a homeowner’s credit score.
| State | Average annual premium | % difference from average |
|---|---|---|
| Hawaii | $396 | -73% |
| Delaware | $589 | -60% |
| Vermont | $681 | -54% |
| New Hampshire | $709 | -52% |
| Oregon | $776 | -47% |
Average homeowners insurance cost by company
Each homeowners insurance company sets its own rates, so homeowners insurance premiums will vary from carrier to carrier. Although many of the premiums below are in line with the national annual average of $1,477, a few are significantly lower.
This illustrates the benefit in obtaining quotes from multiple insurance providers when you are shopping for homeowners insurance. Since each carrier has its own rates, comparing multiple quotes will help you decide which carrier can offer you the coverage and price that best fits your needs.
| Home insurance company | Average annual premium for $250,000 dwelling |
|---|---|
| State Farm | $1,457 |
| Allstate | $1,451 |
| USAA | $1,454 |
| Farmers | $1,502 |
| Travelers | $1,277 |
| American Family | $1,458 |
| Nationwide | $1,366 |
| Chubb | $1,379 |
| Erie Insurance | $1,088 |
| Auto-Owners | $1,503 |
Components of homeowners insurance policies
Every homeowners policy provides specific protections, which help guard against substantial financial loss due to fire, storms, theft, vandalism and legal liability. The most common forms of home insurance policies include:
- Dwelling insurance: This pays for covered damages to your home’s primary structure and attached structures such as carports or garages.
- Personal property insurance: This protects the contents of your home, including clothing, furniture and electronics.
- Personal liability insurance: This pays for medical expenses or property damage if a court rules you are financially responsible for an incident involving your home or the property it occupies.
- Medical payments insurance: This covers the medical expenses of someone outside your household who sustains an injury on your property, regardless of who is at fault.
- Other structures: This is optional coverage to provide property damage protection for structures not attached to your home such as a garage or shed. These structures are generally covered for around 10% of the total insured value of your home.
Not every homeowners insurance policy contains the same components. If you are unsure what your policy covers, talk to your agent or insurance company for clarification.
Factors that affect homeowners insurance cost
Insuring your home is a gamble for an insurance company. Certain types of houses – and houses located in certain areas – create a higher likelihood the company will have to pay claims. Insurance industry statistics paint a clear picture of why companies charge higher premiums for some types of houses. Understanding rating factors should guide you when shopping for a home.
Home characteristics
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.
- Year built: Old houses often cost more to insure because repair costs often run higher than for newer homes. Repairing or replacing features such as custom molding, plaster walls and wood floors requires specialists, which can make them more expensive to repair in the event of a claim.
- Roof condition: The age and condition of a home’s roof plays a role in homeowners insurance rates. Old roofs can leak, causing damage to the home’s contents, foundation or structure. Likewise, roof materials can affect your homeowners insurance rate, since some types of roofs are more expensive to repair or replace than others.
- Construction quality: Many homeowners policies do not cover the expense of bringing a home up to current building code following a calamity. Insurance companies sometimes offer an Order of Law endorsement, also called a law and ordinance endorsement, which can help pay for expenses related to code upgrades made during covered repairs.
- Special features: Features such as hot tubs and swimming pools make a home more, but they also increase homeowners insurance rates because they can raise repair and replacement costs and add liability risks. Homes with recreational features might need higher liability coverage in case a guest sustains an injury.
Location characteristics
Geographic location 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.
- Weather-related risks: Standard homeowners policies generally do not cover flood damage or damage from earthquakes. In fact, some insurance companies do not cover homes in flood zones at all. Other insurance companies sell private flood insurance or offer earthquake coverage in separate policies or endorsements in order to protect against these types of disasters.
- Fire risk: According to the Insurance Information Institute, structure fires caused over $11 billion worth of property damage in 2018. Insurance companies rate homeowners premiums based on proximity to a fire station and proximity to fire hydrants, because rapid emergency response often minimizes damage.
- Crime risk: If you live in a high-crime neighborhood, your insurance rates might be impacted. You can help offset this cost to your premiums by installing additional safety features to your home, such as deadbolts and a security alarm system.
Methodology
Bankrate utilizes Quadrant Information Services to analyze rates for all ZIP codes and carriers in all 50 states and Washington, D.C. 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 may be different.
Rates are determined based on 2020 Quadrant Information Services data.
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