Average Homeowners Insurance Cost Per Year – Looking for your dream home? If you live in one of these states, you may also have to consider a hefty home insurance premium.
Buying a home, whether a starter home or a place for the whole family, represents a significant investment for all homeowners. And even if your home is in a perfectly “safe” location, there’s always the chance of disaster in the form of theft, fire, or natural disaster, leaving you with stolen or destroyed property. To protect against the worst-case scenario, most homeowners choose to invest in homeowner’s insurance. In fact, according to a 2016 survey conducted by the Insurance Information Institute (III), 95 percent of homeowners have some form of homeowners insurance.
Average Homeowners Insurance Cost Per Year
Although almost every homeowner has some type of insurance policy, not all policies are created equal. After all, some areas of the country are more vulnerable than others. Homes on the windward or south coast are vulnerable to disasters such as tornadoes, hurricanes, and floods, while homes in densely populated urban areas may be more susceptible to theft or other forms of property damage. Interested in finding out more about regional trends in home insurance prices, researchers looked at the 10 states with the most expensive home insurance.
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The data science team at Let Users Compare Home Insurance Quotes has crunched the numbers to get a better understanding of homeowners insurance premiums across the United States. Referring to HO-3 homeowner’s package policy data (for owner-occupied dwellings with one to four family units) released by the National Association of Insurance Commissioners (NAIC), they determined the states with the most expensive homeowner’s insurance. The average home value and common natural disaster in each state were obtained from Zillow and the Federal Emergency Management Agency (FEMA), respectively.
Nebraska starts the countdown, with an average annual homeowner’s insurance premium of $1,481. The Cornhusker State is one of six states that make up Tornado Alley, named in the 1950s for the region of the country where tornadoes are most common. prevent Despite this, severe storms are the most commonly declared natural disasters in Nebraska. Since 1953, there have been thirty-seven hurricanes that have reached the level of a natural disaster, according to FEMA, but only five tornadoes.
Massachusetts is one of two states in the Northeast — an area of the country known for its winter snowfalls — in the top ten and one of only four states on the list with a median home value above the national average. In fact, Massachusetts’ median home value of $422,856 is higher than the other three states, largely due to expensive home prices in and around Boston.
Another state known for its snowfall, Colorado, is number eight on our list. Despite these cold winters, Colorado’s most commonly recorded natural disasters are its wildfires. Since 1953, sixty-eight fires have reached catastrophic status; Most of them started during the dry summer months. In addition to high homeowner’s insurance premiums, homes in the Centennial State cost a pretty penny for interested buyers: Colorado’s median home value of $397,820 is significantly higher than the national average and the sixth most expensive of all 50 states.
Homeowners Insurance Statistics
Mississippi, whose annual home insurance premiums are about 27 percent above the national average, ranks first among five southern states in the top seven. It has the lowest median home values of any state in the top ten. This can be partially explained by the fact that only 49.4 percent of the state’s total population lives in urban areas, according to the 2010 United States Census. Only one state — Vermont — has fewer urban residents.
The nation’s smallest state is also the most expensive to live in, with median home values and homeowner’s insurance premiums higher than the national average. Rhode Island is the only state on the list that considers hurricanes a commonly declared natural disaster. Although the state has recorded only 25 national disasters in the last sixty-seven years, one-third of them were hurricanes.
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At the heart of the aforementioned Tornado Alley, Kansas is one of the states with the most tornadoes annually. In fact, according to data from the National Oceanic and Atmospheric Administration (NOAA), only Texas had more recorded tornadoes between 1991 and 2010. This is certainly one of the reasons why the Sunflower State has the fifth highest homeowner insurance premiums in the nation. , even though median home values in Kansas are about 40 percent below the national average.
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Since 1953, Oklahoma has experienced 210 natural disasters, including 105 fires. In addition, the state has a property crime rate of twenty-eight per 1,000 residents, higher than the national average of 22 per 1,000. Both of these facts may help explain why Oklahoma’s homeowner’s insurance premiums are fifty-five percent higher than the national average, despite having the fourth lowest median home values in the nation.
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Under III, Texas home insurance policy forms differ from standard forms, resulting in artificially high premiums. Nevertheless, the Lone Star State takes third place on the list. Even though the state adheres to standardized policy forms, Texas still has some of the highest homeowner insurance premiums. Texas recorded 155 tornadoes from 1991-2010 – fifty-nine more than any other state in the country. It also has a violent crime rate and property crime rate that exceed the national average.
Florida has seen forty-four hurricanes since 1953, and it contains three of the nation’s ten most hurricane-damaged coastal counties since 2008, according to III. But surprisingly, hurricanes are not a common natural disaster in Florida. That honor actually comes after the fire, of which there have been sixty-five since 1953. In fact, the most recently declared disaster in Florida was the wildfires. The fire, which started after a man failed to fully extinguish the fire in his backyard, burned 59 houses and 343 hectares of land in May 2020.
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Louisiana’s median home value of $166,565 is one of the ten lowest nationwide, yet the state has the highest homeowner’s insurance premiums in the nation. Perhaps this is not surprising, since the state’s location is adjacent to the Gulf of Mexico, which is often the target of hurricanes. Louisiana was the site of the most notorious natural disaster of the 21st century: Hurricane Katrina, which caused nearly 2,000 deaths and $108 billion in damages. That storm was one of twenty-seven to hit the Bayou State in the last 67 years.
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Their team of data scientists and subject matter experts present Insights, a series of car, home and health studies that focus on topics that affect us all. Through expert analysis of more than 4 million auto insurance applications and a variety of top data sources, the Insights team produces new data-driven articles, trend analyses, regional rankings and national rankings every week. See insights featured in Forbes, Fox News, USA Today, NPR and more. If you’re looking for ways to save money right now, you might want to start by looking at how much you spend on homeowners insurance each year. According to our latest map, how much homeowners insurance costs depends entirely on where you live.
We found our card data on Insurance.com, a cost comparison site. There are some assumptions behind the data in our map. A married couple with excellent credit may want to insure a $300,000 home with unique policy features, such as a $1,000 deductible and $5,000 guest medical coverage per person. We calculated the average cost of insurance in each state, then created a color-coded map based on how much more or less each state’s rates cost than the national average. This allows you to easily see the relative and absolute amounts of average homeowner insurance costs across the country.
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Our map contains two interesting insights into the homeowners insurance market. First, the most expensive states are located along the Gulf of Mexico in the south and extend into Hurricane Alley. Oklahoma is the most expensive state in the nation at $4,445 per year, or 92.8% more than the average. If you draw a straight line from Montana to Florida, each state has an above-average rate. Because geography is one big thing
