Home Insurance Cost

Are Home Insurance Costs Higher Depending on Where You Live?

How much does homeowners insurance cost? While there isn’t a set amount you should be paying for homeowners insurance, there are averages across the country that can give you an indication of how much you can expect to pay where you live.

If you’ve ever moved across the country or even just across your state, you may have noticed a difference in your average home insurance costs. According to research on the insurance industry, homeowners insurance costs can differ depending on location. Whether you are living in an urban or suburban area, the age of your home, the neighborhood, and your home buying history can all influence the average cost of home insurance.

Location may be the most important factor in your home insurance costs, but why are the average costs of home insurance more in some locations than in others? What you can do to lower your home insurance costs no matter where you live?

The Most Expensive and Least Expensive States for Home Insurance

usa map of home owners cost infographic

According to the National Association of Insurance Commissioners, the five states with the highest homeowners insurance costs are:

  • Florida ($2,055)
    Florida has the most high-value insured coastal property in the United States. Florida homeowners also face risks like lightning strikes and sinkholes, dangers that drive home insurance premiums up.
  • Texas ($1,947)
    Hurricane and hail damage top the list of the costliest repairs, and Texas is regularly in the top five states with the most catastrophic annual losses.
  • Louisiana ($1,847)
    Louisiana is on the list for expensive homeowners insurance because of hurricanes, other storm damage, and the number of lawsuits coming from home insurance claims.
  • Oklahoma ($1,772)
    Oklahoma faces the perfect storm when it comes to driving up the average costs of homeowners insurance. Tornados, hurricanes, wildfires, floods, storm surges and earthquakes are among the natural disasters residents have to contend with.
  • Mississippi ($1,447)
    Mississippi faces issues similar to its southern neighbors, including hurricanes, floods, and storm surges, all resulting in high homeowners insurance costs.  

The five states with the lowest homeowners insurance costs:

  • Washington ($695)
    Washington can have floods, earthquakes, and the occasional volcanic eruption, but it still has few natural disasters that occur with any frequency.
  • Wisconsin ($686)
    Wisconsin is consistently one of the states with the lowest homeowners insurance premiums because it also has a low Natural Hazard Risk Score.
  • Utah ($634)
    Utah has few natural disasters that threaten residential areas, which decreases the average homeowners insurance costs in the state.
  • Oregon ($574)
    Oregon has mountains and coastline that can feel an earthquake every so often, but the vast majority of the state experiences few natural disasters.
  • Idaho ($590)
    Idaho has consistently low average costs of homeowners insurance because it has a low Natural Hazard Risk Score.  

How Location Affects Homeowners Insurance Costs

Where you live comes with inherent insurance risk factors like earthquakes and hurricanes. Different parts of the United States are affected to greater and lesser degrees by these natural disasters. Homes abutting forests or natural areas in parts of eastern Washington are at higher risk for wildfire damage than residential areas in urban areas, or those located in the damper western regions of the state.

When it comes to home insurance costs, location is about more than just natural disasters. Communities are also rated based on their fire protection status, because fire is one of the top reasons for filing claims after natural disasters. If your city has a professional fire department with good coverage they can save your home, and save you money because insurance agencies know they won’t have to pay a large claim.

The risks for your property and the area around you inform an insurance company about your personal insurance risk. Neighborhood crime rates also play a role in homeowners insurance policy costs. Where there are fewer break-ins and thefts, there are fewer claims, resulting in lower home insurance premiums for everyone in the neighborhood.

The best way to find out how much homeowners insurance is in your area is to talk to a Trusted Choice® independent agent. They know the community where you live and the unique factors for your location, and they will get multiple quotes so you can shop around for the lowest home insurance costs that meet your needs.

What Other Factors Are Considered in Average Home Insurance Costs?

Average homeowners insurance estimates in your state, city or neighborhood may not be what you end up paying for your insurance. You are unique as a homeowner, so your insurance costs will be unique to you as well. Other than location, there are some other factors that insurance agents consider when putting together a homeowners insurance policy. These may include:

  • The design and size of your home. Your home’s design can impact your insurance rates. If your home is older, it may be less structurally sound than a new home. A brick house is better protected against fire and is also more maintenance-free, meaning that it will be in better shape for years to come. Also, the cost of replacing your house in the event of a fire or natural disaster has a lot to do with the square footage.
  • Claim history. If you have a history of filing claims, particularly on one property, it will increase the costs of your homeowners insurance.
  • Credit history. Like a good claim history, good credit can lessen your individual risk when it comes to insurance and help lower your payments.
  • Personal risk. Owning an in-ground pool, trampoline, or certain dog breeds can increase your personal risk and impact your homeowners insurance rates.

Cost By State

Find out what the average homeowners insurance premium is in your state.

Insurance premium

Disclaimer: the figures above should not be viewed as reliable homeowners insurance estimates. Rather, this information should provide a rough starting point for getting information.

Focusing on Cost Alone Can Lead to Being Underinsured

Going after a great insurance deal might seem financially prudent, but it can lead to a sticky situation if a disaster occurs. Many people who pay less for homeowners insurance may be underinsured; according to a recent study by Marshall & Swift/Boeckh, nearly 60% of homes in the United States are underinsured. Being underinsured means that your homeowners insurance may only cover about 78% of the costs of a catastrophe that affects your home. Saving money now on homeowners insurance costs but being underinsured puts homeowners in a tight situation should they face catastrophic losses on their home.

How to Find Valuable Coverage at the Best Rates

Finding good insurance policy prices with the coverage you need might seem like a daunting task, but it’s possible to find an insurance policy that doesn’t compromise quality for cost. Things like keeping a good credit score, researching multiple insurance options, and raising your deductible can keep your average homeowners insurance costs down over the long term.

Homeowners can search for discounts for improving their home’s safety and making their property more resilient against natural disasters. Getting the highest-quality home insurance coverage at the best price is easier when you request insurance quotes from multiple insurance companies. This is possible through a Trusted Choice independent agent who can help you find an insurance policy that provides the best coverage for you and your home. Contact a local agent in your area today.

Now, who's ready to get their insurance problems solved?