How much does homeowners insurance cost?

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Homeowners insurance rates vary by a lot of factors, and how much you pay may be a lot more than someone a state away.

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 $250k. No matter what the average may be in your state, understanding the various factors impacting your rates keeps you from overpaying for homeowners insurance.

Additionally, the home insurance provider you choose impacts the cost of your premium. This is because each provider weighs the above variables differently with a pricing algorithm, which is why it’s so important to shop around if you’re looking to save money.

Average homeowners insurance cost by state

How much is homeowners insurance? It depends, but the national average for home insurance is $1,477. Some states pay a lot more, while some a lot less.

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

Homeowners along the Atlantic and Gulf coasts pay higher home insurance rates due to the frequency of devastating storms. Among other factors, insurance companies base rates on the actual and anticipated claims they pay following catastrophic events, including floods, hurricanes and tropical storms.

As expected in Florida, weather-related claims cause high rates. In addition, the Sunshine State is also known for high incidents of fraud, perpetrated by unscrupulous contractors, who exploit insurance companies following natural disasters.

If you live in an area prone to tornadoes, the impact will be felt in homeowners insurance premiums too. For instance, homeowners in eastern Colorado, Kansas, Nebraska, Oklahoma, South Dakota and northern Texas pay high home insurance rates because they live in a region known as “Tornado Alley”, which experiences annual tornadoes. Homeowners in “Dixie Alley”, which encompasses the entire southeastern United States, also 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 a positive impact too.

For instance, Hawaii has the lowest premiums primarily for two reasons. Most standard Hawaii home insurance policies do not cover hurricane damage. For maximum protection, many Hawaii homeowners purchase separate hurricane policies. 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%

Types of homeowners insurance

Each homeowners policy provides specific protections, which combined 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.

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

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 leads to higher insurance claims.

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.

Construction quality

Many homeowners policies do not cover the expense of bringing a home up to current building code following a calamity. Insurance companies offer an Order of Law 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 special, but they also increase homeowners insurance rates because they raise repair and replacement costs and add liability risks. Homes with recreational features need higher liability coverage in case a guest sustains an injury.

Location characteristics

Weather-related risks

Standard homeowners policies 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 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 will 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.