home insurance costHow Much Is Home Insurance?

The national average cost of homeowners insurance is $1,211, and has been steadily increasing each year. 

Many folks buy homeowners insurance because it’s required by their mortgage company, but it’s important to remember the real value of your policy: it’s a safety net for the worst-case scenario. Your policy is an investment in the protection of your home, belongings, and yourself and your family. But we get it – no one is trying to spend more on coverage than they have to.

The national average cost of home insurance is $1,211 per year and trending upward – likely due to inflation and an increase in extreme weather.

Average Homeowners Insurance Costs by Year

Source: Insurance Information Institute & 2019 National Association of Insurance Commissioners (NAIC) 

That said, your individual costs depend on several factors:

  • Where you live and your region’s weather-related risks
  • The amount of coverage you carry (the higher your limits, the pricier the policy)
  • The characteristics of your home (replacement cost, roof type, age, construction, etc.)
  • Your deductible
  • Your background (your insurance score, claims history, and available discounts)
  • And more

These variables mean that the cost of home insurance fluctuates – a lot. That’s why answering questions like, “What is a good price for home insurance?” isn’t always straightforward. Your state’s averages likely offer a more helpful impression of the baseline price for home insurance in your area. Let’s take a look.

Average Cost of Homeowners Insurance by State

Av Premium vs. State

Average Home Insurance Premiums by State

State

Average Premium

State

Average Premium

Alabama

$1,433

Montana

$1,174

Alaska

$959

Nebraska

$1,481

Arizona

$825

Nevada

$755

Arkansas

$1,373

New Hampshire

$972

California

$1,008

New Jersey

$1,192

Colorado

$1,495

New Mexico

$1,017

Connecticut

$1,479

New York

$1,309

Delaware

$833

North Carolina

$1,086

D.C.

$1,235

North Dakota

$1,253

Florida

$1,951

Ohio

$862

Georgia

$1,267

Oklahoma

$1,885

Hawaii

$1,102

Oregon

$677

Idaho

$730

Pennsylvania

$931

Illinois

$1,056

Rhode Island

$1,551

Indiana

$1,000

South Carolina

$1,269

Iowa

$964

South Dakota

$1,202

Kansas

$1,584

Tennessee

$1,196

Kentucky

$1,109

Texas

$1,893

Louisiana

$1,968

Utah

$692

Maine

$882

Vermont

$918

Maryland

$1,037

Virginia

$999

Massachusetts

$1,488

Washington

$854

Michigan

$942

West Virginia

$940

Minnesota

$1,348

Wisconsin

$779

Mississippi

$1,537

Wyoming

$1,156

Missouri

$1,285

United States

$1,211

Source: Insurance Information Institute & 2019 National Association of Insurance Commissioners (NAIC)

Why Do Home Insurance Costs Vary by the State?

Every state has its own rules, regulations, and risks. While some perils are universal – a home can get broken into anywhere – others are regionally specific. For example, a home along the coast of Florida is uniquely exposed to hurricanes, while a home in Oklahoma may be at risk for tornadoes and earthquakes. Many California homes face serious risk of wildfire, while homes in Louisiana may face flooding and hurricanes.

On the other side of the coin, landlocked homes in the Midwest and West – Utah, Wisconsin, Idaho, and Nevada – often have lower home insurance rates because they are exposed to fewer catastrophes like floods, hurricanes, wildfires, and earthquakes.

It’s also worth noting that where you get your home insurance can seriously impact how much you pay for coverage. For example, while the national average premium for Florida home insurance is $1,951, Kin’s Florida customers pay an average of $1,091 yearly based on our data. Your city may influence your rates, too. For example, these are the yearly median premiums Kin customers pay in the following Florida cities, based on our data:

With that in mind, let’s look at the highest and lowest home insurance costs by state.

Top 5 Most Expensive States for Home Insurance

The following states have the highest average home insurance premiums:

  1. Louisiana: $1,968
  2. Florida: $1,951
  3. Texas: $1,893
  4. Oklahoma: $1,885
  5. Kansas: $1,584

Highest Average Home Insurance Premiums by State

Top 5 Least Expensive States for Home Insurance

The following states have the lowest average home insurance premiums:

  1. Oregon: $677
  2. Utah: $692
  3. Idaho: $730
  4. Nevada: $755
  5. Wisconsin: $779

Lowest Average Home Insurance Premiums by State

Average Homeowners Insurance Cost by Coverage Limits

Now’s a good time to remind you that the coverage you choose impacts your home insurance premium, too. These averages are based on HO3 policies with all-perils coverage for the dwelling and named perils coverage for personal property – that’s pretty standard for a home insurance policy. If you opt for all-perils coverage for your belongings, too, that will increase the cost of your policy.

Similarly, your policy limits – or the amount of coverage you have – for your dwelling will impact your costs. If you look at national averages for home insurance costs based on coverage levels, you can get an idea of how your choices may increase or reduce your rates.

Average Premium Dwelling Coverage Limits Deductible Amount  Liability Coverage Limits

$1,228

$200,000

$1,000

$100,000

$1,244

$200,000

$1,000

$300,000

$1,737

$300,000 

$1,000

$300,000

$2,252

$400,000

$1,000

$300,000

$2,790

$500,000

$1,000

$300,000

$3,295

$600,000

$1,000

$300,000

Source: Insurance.com

How Your Home’s Characteristics Impact the Cost of Home Insurance

If your home’s replacement cost – that is, how much it would cost to rebuild it from the ground up – is high, your premium will be higher, too. As illustrated above, the amount of dwelling coverage you have can impact your rates considerably. 

For homeowners in Florida, the home’s roof shape and wind mitigation measures can be a significant cost factor, too. Hip shape roofs tend to weather hurricane winds better, so they may fetch a lower rate. A homeowner who has invested in other wind mitigation measures, like stronger roof-to-wall connections, roof-to-deck connections, and roofing materials, can lower their rates even more.

Homeowners Insurance Cost Factors That Can Be Controlled

Cost Factors You Can Control

Cost Factors That Are Mostly Fixed

Coverage Types and Amounts Location
Deductibles Claims History
Risk Mitigation Discounts Home Age and Replacement Cost

Cost Factors You Can Control

The following factors impact your home insurance costs, but you can tinker with them to make your policy more affordable:

  1. Your coverage types and amounts. The more coverage you have, the more the policy will cost. That’s why it’s smart to comparison-shop and weigh the amount of coverage against the cost of coverage. Ideally, you will look for a policy that offers the maximum amount of coverage at the most affordable price. 
  2. Your deductibles. Typically, the higher your deductible amount, the lower your premium. That’s because when you accept a higher deductible, your insurer will simply have to pay out less for a claim. 
  3. Your homeowners insurance discounts. Ask your insurer about every discount you may qualify for. With Kin, Florida residents are eligible for wind mitigation discounts, claims-free discounts, fire and security alarm discounts, and more.

Cost Factors That Are Largely Out of Your Hands

The following variables are often fixed but have a significant impact on your home insurance rates: 

  1. Where you live. Your location has the biggest impact on your premium. Chances are you’ll pay a higher rate if your home is in an area prone to catastrophes like hurricanes and wildfires. If your home is remote and far from fire stations and emergency services, your rate may be higher. And if you’re in an area with a high rate of property crimes, that can drive up your cost, too.  
  2. Claims history. While you can contest your claims record in certain situations and not all types of claims have the same impact on your rates, a checkered claims history will increase your premium. Luckily, claims do fall off your record eventually.
  3. How old your home is. An older home with outdated plumbing and older wiring can increase your premiums or make a home ineligible for coverage. While you can’t change the construction date of your home, you can make updates that make the home safer and more affordable to insure.
  4. The cost to rebuild your home. If you have a sprawling, high-value house that is custom-built, it’s going to cost more to insure it for its replacement cost. In the event of a total loss, both the quantity and the quality of materials may cost more at the current market value to match what you originally had.

Finding Cheap Homeowners Insurance: Ways to Save

home insurance discounts 2While you can’t control some factors that influence your homeowners insurance cost, such as your home’s location, its age, and its replacement cost, there are some things you can do to reduce your rates.

These tips can help you get the cheapest homeowners insurance possible without sacrificing the quality of your coverage.

1. Comparison Shop

Don’t go with the first insurance provider you find or the one your parents use. The best way to make sure you get a good deal on your coverage is to shop around. Get a quote from a few different providers, and don’t look at price alone. You’ll also want to consider:

  • The reputation of the company. Check out their online reviews to get a glimpse into the customer experience you can expect.
  • The amount and type of coverage offered. You might save a few dollars with an actual-cash value policy, but you will sacrifice coverage. It’s wise to only consider policies that offer replacement-cost coverage.

2. Get the Right Amount of Coverage

When you find an insurance provider you trust, this part should be easy. A good insurance provider will help you choose the appropriate amount of coverage for your home, your belongings, and your liability. Not too much coverage, which can drive up your premiums, and not too little, which leaves you inadequately protected.

Ideally, your policy will offer replacement cost coverage for both your home (which means you can rebuild with similar materials at the current market rate) and your belongings (which allows you to replace your missing or damaged possessions with similar, new items).

3. Bundle When Possible

Many insurance providers offer you a discount when you purchase multiple policies through them. For example, bundling home and auto insurance is a common discount.

4. Rethink Your Deductible

Typically, the higher your deductible, the lower your premium will be. While it may be tempting to choose the highest possible deductible to offset your monthly bill, be careful. You don’t want to choose such a high deductible that it puts an unreasonable financial burden on you when you need to make a claim.

For reference, Kin customers can choose between the following deductible options: $500,  $1,000, $2,500, $5,000 or 1, 2, 3, or 5 percent of your dwelling coverage.

5. Avoid Risky Investments, If You Can

While you can’t pick up your home and move it to a new location, you can opt out of adding things to your home that may raise your premium. For example:

  • Swimming pools usually raise the cost of your coverage because they increase your liability exposure.
  • Trampolines, while fun, are injuries waiting to happen. Trampolines raise your risk of visitor injuries and so increase your liability coverage needs.

6. Make Your Home Safer

Certain updates to your house not only make the home safer, but they can also cut your home insurance costs. For example, the following improvements may reduce your bill:

  • Fix your roof. A new roof can substantially cut down on your insurance costs. Some areas may see savings up to 10 percent.
  • Mitigate wind risk. This is a big money saver if you live in hurricane-prone areas. In fact, in Florida, insurance providers are legally required to offer discounts for wind-resistant homes. Consider investing in stronger roof-to-deck and roof-to-wall attachments, storm shutters, fortified garage doors, and shatter-proof windows.
  • Upgrade your HVAC, electrical, and plumbing systems. Newer systems often fetch a substantial discount.
  • Get a generator. Some insurers offer a discount for homes that have a backup generator.
  • Invest in a centrally monitored security system. Depending on where you live, you can get a 5 to 7.5 percent discount on your insurance from Kin when you have proof of a centrally monitored security system.
  • Install an automatic water shut off. Kin offers customers a discount when they have a system that automatically shuts off the water supply when a leak is detected.

Before making big investments, talk to your insurance agent to see what kind of discounts you can expect from each improvement. That can help you spend money that will be offset by savings down the road.

7. Boost Your Credit Score

Most insurers can use your insurance score, which is based on your credit score, as a factor to determine your premium. The logic is the better your score, the less likely you are to make a claim (and subsequently, you qualify for lower rates).

To improve your credit score and reduce your insurance bill, you can:

  • Pay your bills on time.
  • Don’t carry a balance from month to month.
  • Don’t use more than 30 percent of your credit limit.
  • Don’t take out more lines of credit than you need.

8. Review Your Policy When You Renew

We get the impulse to buy and forget about your coverage, but a yearly review is a good practice for a few reasons:

  • You want to make sure your coverage still reflects the reality of your living situation. If you remodeled or bought some valuable new belongings, you want to make sure your policy still offers adequate protection.
  • You get to see if you qualify for more discounts. If you made security updates or upgraded your home’s systems, you may be eligible for lower rates.
  • You want the chance to get rid of coverage you no longer need. Got rid of that trampoline? Great! Before you renew your coverage, let your agent know about possessions you no longer need to protect and liabilities you no longer need to address.

9. Ask Your Insurance Company for Pro Tips

Every insurer offers different discounts, prices, and coverage. So while the tips here apply to most insurance companies, you’ll get the best insight from a provider who can give you the scoop on:

  • Safety and risk mitigation discounts
  • Electronic policy discounts
  • Claims-free discounts

More Ways to Save on Homeowners Insurance