Average Cost of Homeowners Insurance (2016)

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Homeowners insurance rates continue to rise at a steady rate throughout the United States, up over 50% in the last 10 years alone. And if you're in the market for a policy you might be looking to get an idea of what parts of the country are most and least expensive. To that end, ValuePenguin did some digging and number crunching to help you make sense of the data. 

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Average Cost of Homeowners Insurance

In our first table we've looked at homeowners insurance premiums on both a monthly and annual basis. For additional context we've included how each state stacks up against the average annual premium of $952. A positive number in the "% Change vs. Avg" column represents a state that's more expensive than average, while a negative value represents a cheaper than average state.

State Monthly Homeowners Insurance Annual Homeowners Insurance % Change vs. Avg
Alabama  $99.83 $1,198 26%
Alaska  $79.31 $952 0%
Arizona  $57.94 $695 -27%
Arkansas  $88.32 $1,060 11%
California $83.00 $996 5%
Colorado  $82.48 $990 4%
Connecticut  $94.07 $1,129 19%
D.C. $92.96 $1,115 17%
Delaware $56.99 $684 -28%
Florida  $165.91 $1,991 109%
Georgia  $77.77 $933 -2%
Hawaii  $77.85 $934 -2%
Idaho  $44.47 $534 -44%
Illinois  $70.56 $847 -11%
Indiana  $66.87 $802 -16%
Iowa  $61.20 $734 -23%
Kansas  $94.68 $1,136 19%
Kentucky  $72.02 $864 -9%
Louisiana  $143.51 $1,722 81%
Maine  $61.29 $735 -23%
Maryland  $68.67 $824 -13%
Massachusetts  $92.01 $1,104 16%
Michigan  $66.44 $797 -16%
Minnesota  $90.64 $1,088 14%
Mississippi  $120.94 $1,451 52%
Missouri  $87.73 $1,053 11%
Montana  $70.22 $843 -11%
Nebraska  $82.22 $987 -4%
Nevada  $59.14 $710 -25%
New Hampshire  $69.61 $835 -12%
New Jersey  $78.54 $942 -1%
New Mexico  $68.06 $817 -14%
New York  $94.16 $1,130 19%
North Carolina  $74.59 $895 -6%
North Dakota  $83.17 $998 5%
Ohio  $55.28 $663 -30%
Oklahoma  $118.97 $1,428 50%
Oregon  $47.98 $576 -39%
Pennsylvania  $63.86 $766 -20%
Rhode Island  $97.77 $1,173 23%
South Carolina  $93.65 $1,124 18%
South Dakota  $61.88 $743 -22%
Tennessee  $78.54 $942 -1%
Texas $135.45 $1,625 71%
Utah  $48.33 $580 -39%
Vermont  $64.20 $770 -19%
Virginia  $67.13 $805 -15%
Washington  $53.74 $645 -32%
West Virginia  $63.78 $765 -20%
Wisconsin  $50.81 $610 -36%
Wyoming  $66.10 $793 -17%
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*Annual premium data courtesy of the NAIC 2013 Homeowners Study

States With the Highest Average Homeowners Insurance Costs

Somewhat predictably, the priciest states to insure your home are the states most susceptible to large scale natural disasters. Four of those states are victims of the large hurricanes that make their way into the Gulf of Mexico (Florida, Mississippi, Louisiana, and Texas) while the 5th state, Oklahoma, has more tornadoes per square mile than any other place in the United States. Here's what their average annual homeowners premiums look like:

In this graph we rank the 5 states with the highest homeowners insurance costs

States With the Cheapest Average Homeowners Insurance Rates

Contrary to the most expensive states for homeowners insurance, the 5 cheapest states are all great places to live if you want to avoid things like earthquakes, hurricanes, tornadoes, and other natural disasters. Four of those states are in the western half of the US (with 3 being in the Northwest corner). Those states are Washington, Oregon, Idaho, and Utah. The 5th state is Wisconsin who's large cities like Green Bay are also considered very low risk in terms of hazardous natural events. We think this infographic from the New York Times does a great job at depicting the viability of natural disasters across the country. 

Without further ado, here are the 5 states with the most affordable average homeowners insurance rates:

In this graph we rank the 5 states with the lowest homeowners insurance costs

What's the Biggest Cause of Homeowners Insurance Losses?

The ISO (Insurance Services Office) says that almost 98% of homeowners insurance claims are due to property damage. The balance comes from liability cases like personal injury. So the question is what usually causes the property damage that occurs? Based on frequency claims between 2008-2012 the ISO lists the following items as the most frequent offenders. The number associated with the event represents claims per 100 house years:

  • Wind and hail (3.37)
  • Water damage and freezing (1.79)
  • Other property damage (1.04)
  • Theft (0.52)
  • Fire, lightning, and debris (0.43)

Included in the property damage claims are items like theft (number 4 from above). This is evidenced by the fact that jewelry is typically the number one most claimed item based on total value (although this figure reflects not only theft of jewelry but lost and damaged jewelry as well). Our chart below shows you the other 9 most claimed household items on an annual basis by percentage:

This graph shows how often household items are in home insurance claims

Best Homeowners Insurance Companies

Like all other insurance decisions you'll have to make in your life we recommend you get multiple quotes from reputable insurers. Until you compare quotes specific to your house it's always difficult to tell who will offer you the best rate on homeowners insurance premiums. That being said, we've listed the Top 10 homeowners insurance underwriters for you in hopes of aiding your search.

Insurance Company Premiums Written % of Market AM Best S&P
State Farm Mutual Automobile Insurance $16,299,379 20.70% A++ AA
Allstate Corp. 7,166,931 9.1 A+ AA-
Farmers Insurance Group of Companies (3) 4,823,694 6.1 A A+
Liberty Mutual 4,628,086 5.9 A A-
USAA Insurance Group 3,856,394 4.9 A++ AA+
Travelers Companies Inc. 3,450,478 4.4 A+ AA
Nationwide Mutual Group 2,945,058 3.7 A+ A+
Chubb Corp. 1,877,340 2.4 A++ AA
Citizens Property Insurance Corp. 1,637,389 2.1 NA NA
American Family Mutual 1,584,681 2 A A+