Home insurance in Georgia

The average cost of Georgia home insurance premiums is $3,037 per year for a home with a replacement cost value of $350,000.^* Because of the high risk of natural disasters like hurricanes and severe thunderstorms, Georgia is the 16th most expensive state for home insurance. However, the cost of your premium depends on your home’s exact location and other characteristics.

^{*Based on data from the Consumer Federation for America}

Many factors impact homeowners insurance rates in Georgia. Here’s an overview of some common rating factors insurers use to determine home insurance premiums:

• Property’s replacement cost value. The estimated cost to rebuild your home based on local labor and material costs determines how much dwelling coverage you need and your final policy price.

• Coverage limits. The coverage limits you select impact your home insurance rate. The higher your coverage limits are, the higher your premium will be.

• Claim history. Homeowners with a history of filing insurance claims often pay more for home insurance than people with no recent losses. The claims history associated with your property, even before you lived there, may also affect your rate. 

• Your ZIP code. Home insurance rates are different in every state, but your location, down to your ZIP code, will affect the cost of coverage.

• Deductibles. Choosing a higher deductible will result in a lower premium but higher out-of-pocket expenses after a claim. Lower deductibles lead to a higher premium.

• Safety features. If your home is outfitted with certain safety features, like fire alarms, smoke detectors, or a home security system, you might pay less for home insurance. 

The amount of home insurance you need in Georgia depends on your personal situation and risk tolerance. Keep the following in mind:

• Dwelling insurance. You should have enough dwelling insurance to cover 100% of the cost of rebuilding your home to its original condition after a total loss.

• Other structures coverage. This part of your policy is usually set to at least 10% of your dwelling limit and covers the cost to repair or rebuild other structures on your property, such as a detached garage or shed. You may need more coverage if the value of your other structures exceeds that amount. 

• Personal property insurance. Choose a personal property insurance limit that will cover the full value of your belongings, like furniture, clothing, small appliances, fixtures, and decor. 

• Personal liability insurance. Your liability insurance coverage limit should match or exceed the value of your personal assets that could be at risk in a lawsuit.

• Medical payments insurance. Most home insurance policies provide a small amount of medical payments coverage (usually $1,000 to $5,000), but if you want more peace of mind, you can choose higher limits.

• Loss of use insurance. Insurance experts typically recommend choosing a loss of use coverage limit that’s set to 20% of your dwelling coverage limit.

Home insurance policies in Georgia typically don’t cover:  

• Flooding damage

• Earthquake, landslides, or sinkhole damage 

• Pest and insect infestations

• Most instances of mold, mildew, and rot

• Homes that are vacant for an extended period

• Water backups, such as those caused by sewer backups or failed sump pumps

Many Georgia homeowners can benefit from adding optional coverages to their policy. Here’s a look at some of the most beneficial optional policies for homeowners in the Peach State:

• Flood insurance. Flood insurance covers damage to your dwelling and personal items after a flood. You can purchase flood insurance through the federally backed National Flood Insurance Program (NFIP) or a private flood insurer.

• Water backup insurance. Water backup insurance covers the cost of repairing or replacing your property after a sewer backup or sump pump failure. 

• Extended replacement cost coverage. If the cost of repairing or rebuilding your home after a loss exceeds your standard dwelling insurance limit, extended replacement cost coverage will provide a higher payout (often up to 25% or more) to cover it.

• Ordinance or law coverage. Helps cover the extra cost to bring your home up to current building codes after a covered loss, a protection not included in most standard policies. It’s especially useful for older homes or areas in Alabama with strict code rules.

Homeowners insurance isn’t legally required in Georgia, but most lenders require it if you have a mortgage. Once your loan is paid off, you have the option to drop home insurance.

Even if you aren’t required to carry home insurance, you should consider maintaining a policy. A standard home insurance policy can provide robust financial protection against a range of perils, including theft, fire, storms, and personal liability incidents. Without coverage, you’ll need to cover the cost to repair, replace, or rebuild your property.