Average Homeowners Insurance Cost Per Month – Homeowners insurance is an important part of financial security, and there is a lot to consider when shopping for a provider. On the one hand, the best insurance companies have the financial strength, customer service and an adequate offer to be there in the event of a disaster. On the other hand, competitive prices should not break the budget. Finally, here is the average cost of home owner insurance for each state in 2020.
For most people, their home is their most important asset. The only way a family can recover financially from a home lost to natural disasters is if it is properly insured. Homeowners insurance is therefore essential for financial security. We found the average fees for 2020 in each state at ValuePenguin, a financial education and product comparison website. Visualizing the breakdown for each state in the country makes it easy to see if you’re getting a good deal on an important area of your personal finances.
Average Homeowners Insurance Cost Per Month
States in Tornado Alley have some of the highest homeowner insurance rates in the country. Oklahoma is the most expensive at an average of $2,559 per year. Kansas and Texas both have higher rates ($2,461 and $2,451, respectively). Not only do these states get tornadoes more often than elsewhere, they are also significantly stronger, topping out at F3-5 strength ratings. For example, Oklahoma City alone has been hit by two or more tornadoes on the same day 29 times. These factors make homeowners insurance more expensive.
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At the other end of the spectrum, there are some states where the average cost is less than $1,000 per year. Many places cluster in the Northeast, such as Vermont ($614), New Hampshire ($773) and Maine ($849). Delaware boasts the cheapest rates in the country at just $598, or $50 per person. month. That’s about half of what the average American spends on a cell phone, according to the latest survey of consumer spending by the Bureau of Labor Statistics.
Homeowners insurance costs fall between these two extremes for most states. In general, most people can expect to pay somewhere between $1,000 and $2,000 for coverage. However, it’s important to remember that homeowner’s insurance typically doesn’t cover damage caused by things like floods and earthquakes. Anyone concerned about these types of risks should consider additional types of coverage.
If you are looking for home insurance and need help finding the right cover for you, check out our home insurance price guide. It always pays to shop around and find the best company for you.
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If you want to use our visualizations in books, journals, reports, educational materials, etc., we can issue a license that gives non-exclusive rights to reproduce, store, publish and distribute. Mark Twain said, “Buy the land and they ‘do it no more.'” Twain had no doubt about anything, but any reasonable person investing in real estate these days undoubtedly considers the importance of buying insurance. But how much does it cost, the fundamental factors driving the market What?
We collected our numbers from insurance.com, a platform that educates customers and fosters direct relationships with carriers to help all customers shop around at the right prices and get the right insurance for their current needs.
We colored each state according to the average cost of insurance. Dark red states cost more than $4,000 per year, and dark blue states cost less than $1,300 per year. Our map breaks down geographic and weather-related factors into the basis of home insurance costs.
Let’s back up for a moment and make sure we’ve covered the basics. Home insurance covers the structural value of a home and all contents. Federally backed mortgages require homeowners to purchase insurance—if a fire breaks out without insurance, the lender has no tangible property. Many people also don’t realize that homeowners insurance is different from flood insurance and earthquake insurance. It is a complex market with many different price factors.
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With all that said, severe weather directly affects the cost of home insurance. The cheapest state for home insurance is in the middle of the Pacific – Hawaii costs just $703. Florida is at the opposite end of the spectrum, where it costs $6,892 to insure a home. The cyclone is a clear explanation of the conflict between the two states. Hawaii rarely gets severe weather, and only a handful of hurricanes have hit the island in the past 70 years. Florida, on the other hand, endures more direct hits than any other state. Guess the University of Miami mascot is a hurricane.
Let’s take the difference between Hawaii and Florida to its logical conclusion. A Florida homeowner will pay an additional $6,189 each year. Consider the cost of a typical 30-year loan: The average Floridian has $185K more down on insurance than someone in Hawaii. According to Zillow, that’s roughly what it costs to buy a home in the first place.
Not surprisingly, states bordering the Gulf of Mexico have some of the highest home insurance costs in the country. Louisiana is the second most expensive at $6,115 and Alabama is the third most expensive at $4,532. Both states have suffered major devastation from hurricanes in recent memory. The group of dark red states around the Gulf stands in stark contrast to the dark blue states in the Northwest, where widespread severe weather almost never occurs. Materials are relatively inexpensive throughout the Upper Midwest and Northeast.
In short, our big takeaway from mapping home insurance costs is that prices are cheaper in the Gulf of Mexico. Homeowners can pay significantly more for insurance, depending on where they live. Today, Mark Twain might say, “Buy land, but not in Florida.”
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If you want to use our visualizations in books, journals, reports, educational materials, etc., we can issue a license document that gives you non-exclusive rights to reproduce, store, publish and distribute. Our goal at Credible Operations, Inc., NMLS Number 1681276, referred to below as “Credible,” is to give you the tools and confidence you need to improve your finances. Although we promote products from our partner lenders who compensate us for our services, all opinions are our own.
If your home is damaged by fire, crime or other unforeseen event, homeowner’s insurance will usually pay for repair or replacement in many cases.
The price you pay for your policy can vary significantly based on many factors, including where you live. This article covers what those factors are and the average cost of homeowners insurance.
What Is The Average Cost Of Homeowner’s Insurance?
According to data from the National Association of Insurance Commissioners, the U.S. The average cost of homeowners insurance nationwide is $1,251 per year or $104.25 per month.
This number has been increasing in recent years. That’s because of rising home repair and rebuilding costs, higher disaster losses due to extreme weather and more people moving to disaster-prone areas.
The actual cost of your homeowners insurance can vary widely based on the specific type of policy you choose, your location, and many other factors.
According to the National Association of Insurance Commissioners, here are the average costs of homeowners insurance in the United States by state:
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The most expensive states for homeowners insurance are all located along the Gulf Coast, which is particularly prone to hurricanes. All three states have been hit hard recently, with homeowners facing billions in damages.
The three states with the cheapest homeowners insurance are not in traditionally hurricane or hurricane-prone areas. Their premiums are less than half the average premiums in the most expensive states.
Homeowners insurance policies typically have a home coverage limit, or the maximum amount the insurance company will pay to repair or replace a damaged home. More expensive homes require you to buy a higher home cover limit, which can have a big impact on your premium.
Here are the average costs of homeowners insurance by coverage amount, according to the National Association of Insurance Commissioners:
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If any of the average prices give you sticker shock, remember that you can cut costs when you buy home insurance. Consider these strategies:
Read on for answers to some of the most common questions people ask about homeowners insurance.
The price of your homeowner’s insurance can increase over time for a variety of reasons, some of which are specific to your home. Your home insurance may be more expensive depending on the age of your home, for example because older homes are more prone to damage. If you have a history of filing homeowner’s insurance claims, even if they were for problems that weren’t your fault, you could face higher premiums.
In addition, factors beyond your home can affect the price increase. One
