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Average homeowners insurance rates by state

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Whether you own a home already or you’re house-hunting, it’s wise to know average home insurance rates for your state so you can anticipate what your expense is when shopping your policy and creating a family budget. Knowing what you can expect to pay also helps you save money when comparing rates because you can more easily flag rates that are above the average home insurance cost for your area.

Average home insurance cost by state

While many factors go into calculating your rate, where you live is chief among them. Homeowners in states that are prone to hurricanes, hail storms, tornadoes and earthquakes tend to pay the most for home insurance. Insurance.com’s analysis of rates from top insurers for nearly every ZIP code in the country bears this out. Oklahoma, Kansas, Florida, Arkansas, Texas and Mississippi are the most expensive states for home insurance among common coverage levels analyzed by Insurance.com. Among the least expensive states for home insurance are Hawaii and Vermont

As you’ll see in the homeowners insurance cost by state chart below, Oklahoma is the most expensive state for home insurance, $2,140 more than the national average for the coverage level analyzed. We show average home rates for three other common coverage levels at the end of this article.

Homeowners insurance: Average cost by state

$300,000 dwelling with $1,000 deductible and $300,000 liability

Note that the dollar differences in parenthesis are those that are greater than the national average.

Rank State Average rate $ more or less than $2,305 national average rate % difference from national average $2,305
1Oklahoma$4,445$2,14093
2Kansas$3,931$1,62671
3Florida$3,643$1,33858
4Arkansas$3,439$1,13449
5Texas$3,429$1,12449
6Mississippi$3,340$1,03545
7Louisiana$3,270$96542
8South Dakota$3,172$86738
9Nebraska$3,133$82836
10Missouri$3,111$80635
11Colorado$3,082$77734
12Minnesota$3,010$70531
13Alabama$2,981$67629
14Kentucky$2,862$55724
15Montana$2,809$50422
16Tennessee$2,692$38717
17South Carolina$2,678$37316
18North Dakota$2,601$29613
19Georgia$2,555$25011
20Iowa$2,540$23510
21West Virginia$2,486$1818
22Indiana$2,423$1185
23New Mexico$2,299$60
24Illinois$2,201$104-5
25Michigan$2,153$152-7
26Rhode Island$2,125$180-8
27Ohio$2,107$198-9
28Wyoming$2,083$222-10
29North Carolina$2,009$296-13
30Arizona$1,976$329-14
31Connecticut$1,961$344-15
32Virginia$1,956$349-15
33Massachusetts$1,920$385-17
34Idaho$1,842$463-20
35New York$1,840$465-20
36Maine$1,833$472-20
37Alaska$1,799$506-22
38New Jersey$1,744$561-24
39Wisconsis$1,732$573-25
40Pennsylvania$1,720$585-25
41Oregon$1,608$697-30
42Delaware$1,521$784-34
43Maryland$1,518$787-34
44Washington$1,514$791-34
45DC$1,488$817-35
46Nevada$1,486$819-36
47New Hampshire$1,455$850-37
48Utah$1,378$927-40
49Vermont$1,212$1,093-47
50California$1,166$1,139-49
51Hawaii$499$1,806-78

Note that the dollar differences in parenthesis are those that are greater than the national average.

Insurers review many factors when calculating your home insurance rate. Some of these variables are beyond your control, but you do have some influence over how much you pay for home insurance. By pricing other insurers every few years at least, choosing a higher deductible, making sure you get all the discounts that you can and not filing too many claims, you can do your part to get the lowest insurance rates possible for your home. We'll explain these topics in detail:

How much is homeowners insurance?

When buying a homeowner insurance policy, you decide the coverage amount for the following:

  • Dwelling
  • Liability
  • Medical payments

The limits of your coverage for the following are typically a set percentage of your dwelling coverage limit as shown below:

  • Other structures – 10%
  • Personal property – 50%
  • Loss of use – 20%

You also choose a home insurance deductible amount, which applies to claims for damage to your home or belongings, but not if you’re sued or a medical claim is filed by someone injured in your home. Deductibles usually come in the amounts of $500, $1,000, $1,500, $2,000 and $2,500. The higher your deductible, the lower your rate.

You should buy enough dwelling coverage to match the full replacement cost of your home. It's a good idea to get at least $300,000 of liability coverage to ensure sufficient coverage. 

Learning how to calculate your home replacement cost or value is important, because the amount helps you determine how much dwelling coverage to buy. Figuring out an accurate replacement cost can be done by using online tools, calculating it yourself or by hiring an appraiser.

Medical payments coverage pays for injuries to guests in your home, regardless of who is at fault. Medical payments differs from liability insurance in significant ways, primarily in that it is for minor incidents and comes in very low limits of $1,000 or $5,000. The latter amount of $5,000 is recommended.

The nationwide average annual cost for home insurance for common coverage levels, based on a rate analysis by Insurance.com:

Average rateDwelling coverageDeductibleLiability
$1,806$200,000$1,000$100,000
$1,824$200,000$1,000$300,000
$2,285$300,000$1,000$100,000
$2,305$300,000$1,000$300,000
$2,694$400,000$1,000$100,000
$2,709$400,000$1,000$300,000
$3,046$500,000$1,000$100,000
$3,056$500,000$1,000$300,000
$3,304$600,000$1,000$100,000
$3,323$600,000$1,000$300,000

Review customer satisfaction to find the best home insurance companies

When shopping for home insurance, you want to do more than just compare average homeowners insurance rates. After all, how you’re treated when you file a claim is priceless. 

Insure.com’s annual Best Home Insurance Companies ranking also lists top insurers. Here are the top 10, based on a survey of 3,700 customers, asking them about customer service, claims processing, value for price and if they would recommend the company and would renew their policy:

  1. Chubb
  2. USAA
  3. Esurance
  4. Erie
  5. Nationwide
  6. Safeco
  7. Allstate
  8. AIG
  9. State Farm
  10. Travelers

 

Factors that shape home insurance rates – in detail

Home insurance companies analyze potential risk when devising home insurance rates.

Many factors affect home insurance rates. Here's a look at what impacts home insurance rates:

  • Your home's age -- Older homes have older wiring and plumbing so they are a bigger risk of causing a fire or flooding a basement.
  • Your home's building materials -- Insurers consider a wood-framed home a greater risk than a home made of brick. Fire, wind and pests can cause more damage to a wooden home compared to a brick structure.
  • Your home insurance deductible -- Insurance companies like higher deductibles. A higher deductible means you're less apt to file a claim and will pay more for repairs if you file a claim.
  • Your homeowners insurance discounts -- Insurance companies offer dozens of discounts. Three of the largest discounts are bundling your home with other types of insurance, such as auto; loyalty, which is staying with an insurance company for at least a few years; and being claims free for a period of time. Note: Insurers usually have a cap on the percentage of discounts you can receive. The limit is often set at 25 percent.
  • Your home's claims history -- The claims history includes both your filed claims and ones that previous owners filed. If you file more than one claim in a 10-year period, you can expect your insurance rates to increase. They'll increase even more if you file more home claims. That could even cause your insurance company to drop you because you're considered too much of a risk.
  • Credit history -- Nearly all states allow insurers to consider a person's credit history when devising a home insurance premium. Insurance companies say that credit history is a good indication as to whether a person will file claims.

Once an insurer compiles that information, it is able to create a home insurance rate. An insurance company first looks at the home's perceived risk, the home's location and the homeowner. An insurer then reviews filed claims and adds surcharges to the rate. They lastly subtract applicable discounts. The result is your home insurance premium.

 

Location plays an important role in the cost of home insurance

Location is one of the biggest factors in your home insurance rates.

Insurers consider many factors when judging location:

  • Weather (areas that experience more natural disasters will likely have higher premiums)
  • Population density
  • Nearness to an area that could lead to claims, such as woods (fire risk) or dangerous roads or intersections (cars crashing into your living room)
  • Proximity to a fire department and fire hydrant
  • Claims history for the area

Home insurance companies base rates in part by location, which can go well beyond the state level, said Burl Daniel, CPCU, CIC, CRM, Property and Casualty Insurance Expert Witness, in Fort Worth, Texas.

Daniel said that generally speaking, insurers base rates and premiums on a home's COPE:

  • Construction (brick/frame)
  • Occupancy (owner/tenant)
  • Protection (fire department rating)
  • Exposure (residential vs. commercial neighborhood) 

One part of a state might have higher rates because there is more crime. Or another part of the state may have lower rates because severe weather losses are less frequent.

For instance, someone who lives in New England near the ocean might not get as much snow as someone 25 miles inland. So, the person along the coast with less snowfall may pay less due to a lower risk of freeze losses. Or, on the other hand, if that person living right along the coastline may pay more because of increased risk of ocean windstorm-related damage.

"It's not one size fits all," said Daniel.

Living near a full-time fire station with a nearby hydrant plays a role in your home insurance rates. The reason an insurer wants a home near a fire department and hydrant is that there is less chance of your home burning down if you live near a fire station. Having a hydrant nearby also means that firefighters can start battling a house fire faster than if the hydrant is down the street -- or even miles away.

 

Weather-related claims

If you live in the part of the country with brutal, frigid winters, you will likely pay more for your insurance. Not only because rough winters can cause damage from snow and ice, but also frigid temperatures can cause frozen pipes and flooded basements.

Areas prone to wildfires can also have higher rates. Major wildfires aren't just contained to areas that don't get much rain like Southern California. Wildfires have destroyed thousands of acres in the Pacific Northwest and Tennessee in recent years. Those areas will likely see their home insurance rates increase.

Weather-related claims are often the most frequent, according to III. Here are the top five most frequent claims:

  • Theft
  • Wind and hail
  • Water damage and freezing
  • Vandalism and malicious mischief
  • Fire, lightning and debris removal

Water damage and freezing are the highest total dollar amount for claims. The most expensive homeowners insurance claims by incident are:

  • Fire, lightning and debris removal
  • Bodily injury and property damage
  • Wind and hail
  • Water damage and freezing
  • Vandalism and malicious mischief

One way to keep your insurance rates down is to not file claims. That might sound counter-productive. You have insurance so why shouldn't you take advantage of it, right? Wrong.

More claims mean higher insurance premiums and can cause your insurer to drop you. In fact, filing claims will increase your rates more than nearly anything else. 

Here's one way to make sure that you don't file too many claims -- raise your deductible. The deductible is what you have to pay for repairs after filing a claim. The insurance company picks up the rest of the repair costs. An added benefit -- raising your deductible will also decrease your home insurance premium.

If you decide to increase your deductible, make sure you set aside enough money to pay for the higher deductible in case you have to file a claim.

 

Risky areas to insure a home

Insurance companies review claims from an entire neighborhood when devising rates. Insurers gauge risk by looking at the number of burglaries, vandalism and weather-related claims in an area. Insurance companies usually use zip codes when gauging an area, but your neighborhood and even your street can influence your home insurance rates.

Daniel said insurers may deem a high-crime neighborhood or ones without a nearby full-time fire department and nearby fire hydrants as high risk.

When an insurer perceives higher risk of loss, it may only offer limited policies or policies with limited perils coverage and/or higher deductibles so there is less chance of claims due to increased risk of loss.

If it's bad enough, an insurer can say the risks are too high and may not write a homeowners insurance policy, said Daniel.

Average homeowners insurance rates by state for three common coverage levels 

$200,000 dwelling with $1,000 deductible and $300,000 liability

State Average annual rate $ more or less national average $1,824 % difference from national average $1,824
Oklahoma$3,572$1,74896
Kansas$3,174$1,35074
Texas$2,940$1,11661
Florida$2,876$1,05258
Arkansas$2,875$1,05158
Louisiana$2,656$83246
Nebraska$2,636$81245
Mississippi$2,625$80144
Alabama$2,599$77542
South Dakota$2,594$77042
Colorado$2,514$69038
Missouri$2,500$67637
Montana$2,407$58332
Kentucky$2,331$50728
North Dakota$2,314$49027
Tennessee$2,298$47426
Minnesota$2,254$43024
South Carolina$2,057$23313
Iowa$2,027$20311
Georgia$2,002$17810
West Virginia$1,986$1629
Indiana$1,925$1016
New Mexico$1,851$271
Illinois$1,749$75-4
Michigan$1,725$99-5
Ohio$1,612$212-12
Wyoming$1,592$232-13
Arizona$1,529$295-16
Rhode Island$1,516$308-17
Virginia$1,495$329-18
Massachusetts$1,485$339-19
Connecticut$1,478$346-19
Idaho$1,396$428-23
Maine$1,386$438-24
New York$1,374$450-25
North Carolina$1,373$451-25
Wisconsin$1,372$452-25
New Jersey$1,327$497-27
Alaska$1,320$504-28
Pennsylvania$1,319$505-28
Oregon$1,247$577-32
Maryland$1,124$700-38
Washington$1,122$702-38
DC$1,099$725-40
Delaware$1,085$739-41
Nevada$1,083$741-41
Utah$1,064$760-42
New Hampshire$1,058$766-42
Vermont$916$908-50
California$820$1,004-55
Hawaii$365$1,459-80

$400,000 dwelling with $1,000 deductible and $300,000 liability

State Average annual rate $ more or less than national average of $2,709 % difference from national average of $2,709
Oklahoma$4,938$2,22982
Kansas$4,427$1,71863
Mississippi$4,100$1,39151
Florida$3,962$1,25346
Arkansas$3,871$1,16243
Louisiana$3,704$99537
Texas$3,648$93935
Nebraska$3,628$91934
Minnesota$3,578$86932
South Dakota$3,571$86232
Missouri$3,534$82530
Colorado$3,502$79329
Alabama$3,457$74828
Montana$3,232$52319
Kentucky$3,110$40115
Iowa$3,086$37714
South Carolina$3,072$36313
Tennessee$3,063$35413
Georgia$3,035$32612
West Virginia$3,018$30911
Indiana$2,866$1576
New Mexico$2,730$211
Rhode Island$2,656$53-2
Illinois$2,620$89-3
Michigan$2,563$146-5
Ohio$2,496$213-8
North Dakota$2,477$232-9
Wyoming$2,467$242-9
Connecticut$2,410$299-11
North Carolina$2,367$342-13
Massachusetts$2,365$344-13
Virginia$2,323$386-14
Arizona$2,304$405-15
Maine$2,271$438-16
New York$2,256$453-17
Idaho$2,220$489-18
New Jersey$2,174$535-20
Wisconsin$2,149$560-21
Pennsylvania$2,112$597-22
Alaska$2,095$614-23
Oregon$2,004$705-26
Maryland$1,951$758-28
Delaware$1,932$777-29
Washington$1,921$788-29
DC$1,903$806-30
Nevada$1,884$825-30
New Hampshire$1,726$983-36
Utah$1,694$1,015-37
Vermont$1,542$1,167-43
California$1,508$1,201-44
Hawaii$666$2,043-75

$500,000 dwelling with $1,000 deductible and $300,000 liability

State Average annual rate $ more or less than national average rate $3,506 % difference from national average rate $3,506
Oklahoma$5,056$1,55044
Kansas$4,790$1,28437
Arkansas$4,619$1,11332
Mississippi$4,426$92026
Florida$4,287$78122
Louisiana$4,091$58517
Missouri$4,077$57116
Minnesota$4,060$55416
Texas$4,040$53415
South Dakota$4,034$52815
Alabama$3,813$3079
Nebraska$3,801$2958
Colorado$3,674$168)5
Georgia$3,561$552
Iowa$3,532$261
South Carolina$3,497$90
West Virginia$3,462$44-1
Tennessee$3,397$109-3
Indiana$3,265$241-7
Montana$3,232$274-8
Kentucky$3,213$293-8
New Mexico$3,123$383-11
Rhode Island$3,028$478-14
Illinois$3,026$480-14
Michigan$2,960$546-16
Ohio$2,843$663-19
Massachusetts$2,820$686-20
Connecticut$2,808$698-20
Arizona$2,666$840-24
North Carolina$2,655$851-24
New York$2,638$868-25
Virginia$2,618$888-25
New Jersey$2,602$904-26
Maine$2,579$927-26
Idaho$2,575$931-27
North Dakota$2,547$959-27
Pennsylvania$2,538$968-28
Wisconsin$2,494$1,012-29
Alaska$2,482$1,024-29
Maryland$2,425$1,081-31
Delaware$2,411$1,095-31
Wyoming$2,329$1,177-34
Oregon$2,319$1,187-34
DC$2,309$1,197-34
Nevada$2,280$1,226-35
Washington$2,175$1,331-38
New Hampshire$2,076$1,430-41
Utah$2,038$1,468-42
California$1,888$1,618-46
Vermont$1,868$1,638-47
Hawaii$833$2,673-76

Methodology:

Insurance.com in 2020 commissioned Quadrant Information Systems to field home insurance rates from major insurers in each state for nearly all ZIP codes in the country for 10 coverage levels based on various dwelling and deductible limits. The homeowner profile is a 35-year-old married applicant with excellent insurance score; new business HO3 policy for house built in 2000 with frame construction and composition roof. Other Structures: 10%. Loss of Use defaulted: 10%. Personal Property defaulted: 50%. Guest Medical limit: $5,000. Personal property: 50% of dwelling coverage for actual cash value.