Find the Cheapest Insurance Quotes in Your Area
We found the average cost of homeowners insurance to be $1,083 nationwide. 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, we did some digging and number crunching to show what parts of the country are most and least expensive. When you're done, put your zip code in one of the boxes above to start a homeowners quote.
- Average Cost of Homeowners Insurance
- States With Most Expensive Homeowners Insurance Rates
- States With Cheapest Homeowners Insurance Rates
- Best Homeowners Insurance Companies
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 $1,083. 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. The states are also ranked from least to most expensive.
|Rank||State||Monthly Homeowners Insurance||Annual Homeowners Insurance||% Change vs Average|
Find the Cheapest Homeowners Insurance Quotes in Your Area
III data based on written premiums in each state averaged across households with homeowners insurance policies
Somewhat predictably, the priciest states to insure your home are the states most susceptible to large scale natural disasters. Florida and Texas, our clear number one and number two most expensive states for homeowners insurance with rates 90% and 80% respectively above the nation's mean, are highly susceptible to a slew of natural disasters such as tornadoes, tropical storms, and more. Louisiana, Oklahoma, and Mississippi, who rounded out our top five, are also no strangers to natural disasters. Overall, we found residents of our top five states typically paying 67% more than the typical US resident does for annual homeowners insurance. Below, this graph shows the five most expensive states for auto insurance and compares their rates to the average annual homeowners premium across the nation:
Compared to the most expensive states for homeowners insurance, the five cheapest states are all great places to live if you want to avoid things like earthquakes, hurricanes, tornadoes, and other natural disasters. Four of the states in are top five most inexpensive states for homeowners insurance are located in the western half of the US(with three being in the Northwest corner). Wisconsin is another state in our top five, whose 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:
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 (3.13)
- Water damage and freezing (1.86)
- Other property damage (0.99)
- Theft (0.47)
- Fire, lightning, and debris (0.38)
Included in the property damage claims are items like theft (number four 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 nine most claimed household items on an annual basis by percentage:
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|
|Farmers Insurance Group of Companies (3)||4,823,694||6.1||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+|
|Citizens Property Insurance Corp.||1,637,389||2.1||NA||NA|
|American Family Mutual||1,584,681||2||A||A+|
One factor that can impact your homeowners insurance rates is the cost of the house itself. Even if square footage, exterior type, location, age, and all else remain equal for a given home, the homeowners insurance rate can still change based on price alone. To give you a better idea of the impact on housing price on homeowners insurance rates, we studied coverage amounts of $250,000, $500,000, and $750,000 for a home in several zip codes and tracked how changing values affected the quoted rate from a national home insurer. We repeated this process for the same house in three different states. The chart below displays the blended mean cost of home insurance based on the house's cost, and can give you an idea of how much rates can increase if your house's value rises or drops. Rates are averaged across the different locations and serve an illustrative purpose only. Your actual quote will vary due to a variety of factors not limited to your home location, features, and more.
Our analysis shows that homeowners insurance rates generally increase linearly relative to the value of the home. For our sample home, we found that the insurance for the $250,000 house was 38% less than the $500,000 house whereas the insurance for the $750,000 house was 37% higher than the $500,000 house.
The type of framing your house has can also impact how much money you spend on car insurance. In our study, we looked at four different framing types for a $250,000 home in a set zip code and analyzed how the rate changed for a national home insurer. We repeated this process for three states: Oregon, California, and Texas. Below, we've included a table that outlines how you can expect your house's framing type to impact your homeowners insurance rate when compared to houses with other framing types. Keep in mind, the figures listed in our table are a blended average across the three states and only show the relative relationship. Your actual rate will be tailored to your home's location, size, features, and more.
|Siding Type||Annual Rate||% Change vs Average|
|Masonry Veener/Brick Veener||$1,282||-5%|
Typically, we found there was a very little price difference, if not no difference, between brick and masonry framing versus brick/masonry veneer framing. Our analysis showed that log or wood framing was generally the most expensive framing type in all areas, albeit with some exceptions. We suspect this may be partially due to the susceptibility of wood to fire, rotting, termites, and other issues that may not be as prevalent for stone exteriors. Thankfully, log or wood framing generally is not as popular of a framing option as it was pre-1930s, so many homes you see with this exterior type have an additional age risk that may be driving up the homeowners insurance rate as well.