Find Cheap Homeowners Insurance Quotes in Your Area
The cost of insuring a home has continued to rise steadily throughout the country. According to the National Association of Insurance Commissioners, home insurance rates are up almost 47% in the last 10 years alone. To help you understand the market, we did some digging to discover which states are the most and least expensive.
Read through our findings below, or enter your ZIP code in the tool above to compare homeowners insurance quotes in your area.
The most expensive states for homeowners insurance
Homeowners insurance costs an average of $1,445 annually, but premiums vary greatly by state, from $598 annually in the least expensive state to $2,559 annually in the most expensive state.
We collected thousands of homeowners insurance quotes and calculated the average premium for each state. The following table shows our findings, from the most expensive to the most affordable states for home insurance.
Average insurance cost
Individual state averages are based on the median home value in each state, which we used as an approximation of the cost to rebuild the home.
Differences in state averages stem from a number of factors, including the unique home insurance risks for each state, the amount of coverage a typical homeowner buys in each state and several other factors. Your own rates could differ significantly from the state average as well. Read on to learn more about what states pay the most and the least, and what factors insurers consider when setting your premiums.
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Which states pay the most for home insurance coverage?
States that face the highest home insurance costs are the ones where natural disasters occur most frequently. Oklahoma and Kansas lead the pack, with tornadoes pushing average premiums in those states much higher than the national mean.
Texas, South Dakota and South Carolina round out the top five costliest states for home insurance. Our data showed homeowners in these five states spend 68% more per year on insurance premiums than the typical U.S. resident.
Which states pay the least?
The cheapest states for home insurance are Delaware, Vermont, Pennsylvania and New Hampshire. These states tend to be less susceptible to major disasters such as hurricanes, have lower home values, or both.
Our estimates showed that the average cost of covering a typical home in these states is less than $667 a year. On average, homeowners in these states pay 54% less than the typical price nationwide.
What does homeowners insurance cover?
If you want to lower your rates, you need to know what your homeowners insurance policy covers in the first place. Individual policies will differ, but most consist of four standard coverages:
Dwelling coverage pays for the cost of repairs or replacement if the structure of your home is damaged by a covered event. Coverage can pay for damage to:
- Built-in appliances
- Garages, sheds and other structures (usually)
Personal property coverage protects the contents of your home from any damage caused by a covered peril. A standard HO-3 will likely include coverage for:
Liability coverage deals with your legal liability for property damage or bodily injury to others. This could cover:
- Legal expenses you incur if your dog bites a guest and you are sued
- Legal expenses you incur if your tree falls and damages your neighbor's roof
- Repairs to your neighbor's window if you break it while playing ball
Loss of use coverage covers any unusual expenses you incur while living away from your home after it's made uninhabitable by a covered peril. These could include:
- Costs of living in a hotel or motel
- Costs of meals out while living in temporary housing
- A credit check fee for renting out a temporary home
- Transportation reimbursement for increased mileage to your workplace
What factors impact your home insurance rates?
Insurers look at many variables when pricing a policy. These are either fixed factors that are unchangeable, like the year your home was built, or adjustable factors you can control, like whether your roof is weatherproof.
Factors out of your control that affect home insurance rates
- Your home's age. Older homes are more likely to have structural wear and tear that increases risk and thus increases your premiums.
- The materials used to build your home. Certain materials are more vulnerable to fire, termites, rotting and other dangers than others. Homes with metal or tile roofs, for instance, will likely incur lower insurance rates than homes with asphalt roofs.
- The location of your home. Live in an area with high crime rates, with stormy weather or far away from a fire department? Your insurer will factor these and other risks into your annual premiums.
- Your pets. Liability insurance covers any injuries your guests sustain from your pets, and if you have a particularly aggressive breed as a pet, you may pay higher insurance premiums.
- Special features. You might see a hot tub, swimming pool or trampoline as a perk, but your insurer views it as an "attractive nuisance" that poses a hazard to any potential guests. If your home includes these features, you'll pay more for insurance.
Factors in your control that affect home insurance rates
- Claims history. Your personal claims history indicates how likely you are to file a claim in the future. The more claims made, the higher your rates.
- Your dwelling coverage limit. While this number is closely related to the value of your home, you will likely still need to decide whether to purchase replacement cost value (RCV) coverage or actual cash value (ACV) coverage. We generally recommend RCV, as it covers the cost of rebuilding your home from the ground up. It is the more expensive choice, but it guarantees that your insurance payout won't be lowered as your home ages and depreciates in value.
- Your coverage limits for personal property and liability. Standard liability coverage generally starts at $100,000. Increasing either of these coverages will cost you more in premiums.
- Your deductible. This is the amount of money you must pay out of pocket before your policy begins paying out your claim. Choosing a higher deductible means lowering your potential benefit, which makes your policy less valuable and therefore cheaper.
- Renovations to your home. Making changes to your home could affect your premiums. Improvements that make your home more secure, such as strengthening the roof or installing a security system, could lower your premiums. Conversely, increasing the square footage of your home could get you higher premiums.
- Your credit score. Insurers view a good credit score as a sign of financial stability and reward you with lower rates. While improving your credit score certainly takes time, it can help you secure more affordable premiums across a number of insurance products.
Home insurance discounts offer a variety of ways to save on home insurance rates, including discounts for bundling your auto and home insurance purchases together and for home safety features such as a central alarm system.
How can you reduce the cost of your homeowners insurance?
The best, easiest way to reduce your homeowners insurance cost is to get quotes from multiple insurers. It's especially easy to do this when your policy is up for renewal or if you've made major changes to your policy.
Another option is to raise your deductible — the amount you pay before insurance kicks in — since a higher deductible directly results in a lower premium. However, you should only raise your deductible to an amount you can cover if you experience a loss. If you couldn't afford an unexpected $5,000 expense, you should keep your deductible below that amount.
Lastly, be sure to ask after homeowners insurance discounts. While discounts vary from company to company, some common ones include:
- Multi-policy discounts for bundling home and auto insurance
- A loyalty discount, particularly for customers who have remained claim-free
- A discount for hail-resistant roofs
- A discount for security technology, such as smart smoke alarms, a lightning protection system or a central alarm system
- A discount for retiring, as being at home more often decreases your likelihood of experiencing a burglary
What are the main factors that affect how much home insurance costs?
The three main factors that affect home insurance cost are your home's location, how much it's insured for and how susceptible it is to damage. For example, a home located along the coast would have higher insurance costs than one that's inland, and a home made with expensive or fragile materials costs more to insure than one made with more affordable or sturdy materials.
What is covered by homeowners insurance?
It depends on what kind of policy you buy, but in general homeowners insurance covers liability, damage to the structure of your home and damage to your personal property. Liability coverage pays for damages to others if you're deemed responsible.
What sources of damage are covered by homeowners insurance?
Most homeowners insurance policies have a list of perils (sources of damage) that are covered. The most common perils include fire, wind, theft, vandalism, freezing and damage from vehicles. Some insurance policies are "open perils," which means you're covered for everything that's not explicitly excluded.
We collected home insurance quotes for every residential ZIP code in the United States, from the largest homeowners insurance companies in every state, then found the average of each state. We then averaged these state averages to find the typical home insurance price in the U.S.
For each state average, we collected quotes corresponding to the median home age and value for each state. For example, our California sample home was built in 1975 and insured to a value of $509,400. Meanwhile, our sample West Virginia home was built in 1972 and insured for $119,800. We used median home values to approximate the rebuild cost in each state.
ValuePenguin's analysis used insurance rate data from Quadrant Information Services. These rates were publicly sourced from insurer filings and should be used for comparative purposes only — your own quotes may be different.