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The US housing market is one of the most expensive in the world. Home insurance prices in the US are some of the highest as well. If you’re looking to compare home insurance prices in the US, you’ve come to the right place. In this blog post, we’ll rank US home insurance prices from highest to lowest.
There are a lot of factors that go into how much you pay for home insurance. Some of these include the value of your home, the age of your home, the location of your home, and the type of coverage you need.
The most important factor in determining your home insurance rates is the value of your home. The more valuable your home is, the more it will cost to insure. The age of your home is also a factor. Older homes are often cheaper to insure because they’re not as likely to suffer from major damage.
The location of your home is another important factor. Homes in high-risk areas, like those prone to floods or earthquakes, will cost more to insure than homes in low-risk areas. And finally, the type of coverage you need will also affect your rates. If you need more comprehensive coverage, you’ll pay more for your policy.
What Factors Influence Home Insurance Prices?
​There are a variety of factors that can influence how much you pay for home insurance. One of the biggest factors is the value of your home. The more your home is worth, the more it will cost to insure. Another factor that can influence your rates is where your home is located. If you live in an area that is prone to natural disasters, you can expect to pay more for insurance.
Credit scores are another factor that can affect your home insurance rates. If you have a good credit score, you will likely qualify for a discount on your premium. Insurance companies use credit scores to determine how likely you are to file a claim. If you have a history of filing claims, you can expect to pay more for insurance.
The type of coverage you purchase can also affect your home insurance rates. If you only purchase the minimum amount of coverage, you can expect to pay a lower premium. However, if you purchase more comprehensive coverage, you can expect to pay a higher premium. The amount of coverage you need depends on the value of your home and your personal belongings.
Finally, your personal circumstances can also affect your home insurance rates. If you are married and have a family, you will likely qualify for a discount on your premium. Insurance companies offer discounts for families because they are less likely to file a claim. If you are a renter, you can also expect to pay a higher premium because you are considered a high-risk customer.
What Type of Home Insurance Do I Need?
​​If you’re a homeowner, you know that one of the most important things you can do is keep your home insured. But what kind of home insurance do you need?
There are four main types of home insurance: HO-1, HO-2, HO-3, and HO-5. Let’s take a look at each one to see what they cover.
HO-1: Basic Homeowners Insurance
HO-1 insurance is the most basic form of homeowners insurance. It covers your home and personal belongings against 11 perils, including fire, smoke, windstorm, theft, and more.
HO-2: Broad Form Homeowners Insurance
HO-2 insurance is a bit more comprehensive than HO-1 insurance. It covers your home and personal belongings against 16 perils, including all of the perils covered by HO-1 insurance, plus a few more, like hail, water damage, and more.
HO-3: Special Form Homeowners Insurance
HO-3 insurance is the most comprehensive form of homeowners insurance. It covers your home against all perils, except for those specifically excluded in your policy. It also covers your personal belongings against all perils, except for those specifically excluded in your policy.
HO-5: Comprehensive Form Homeowners Insurance
HO-5 insurance is the most comprehensive form of homeowners insurance available. It covers your home and personal belongings against all perils, except for those specifically excluded in your policy.
So, what kind of home insurance do you need? The answer depends on a few factors, like the value of your home and personal belongings, the amount of coverage you need, and your budget.
If you have a mortgage, your lender will likely require you to have HO-3 insurance. But even if you don’t have a mortgage, HO-3 insurance is a good option if you want comprehensive coverage for your home and belongings.
If you’re on a budget, HO-1 or HO-2 insurance might be a good option for you. But keep in mind that these policies have more limited coverage than HO-3 or HO-5 policies.
No matter what kind of home insurance you choose, make sure you get enough coverage to protect your home and belongings. Review your policy regularly to make sure you have the coverage you need.
Why Do Home Insurance Prices Vary?
There are many different factors that go into setting home insurance rates. Some of these factors are beyond your control, like the location of your home, the age of your home, and the local crime rate. However, there are also a number of factors that you can control, like the amount of coverage you need and the type of policy you choose.
One of the biggest factors that determines your home insurance rates is your home’s location. Rates vary widely from state to state, and even from one zip code to the next. In general, homes in states with high populations and high property values tend to have higher rates than homes in other states. This is because there’s simply more risk for the insurance company to cover.
Another factor that can affect your home insurance rates is the age of your home. Older homes are often cheaper to insure than newer homes, because they’re typically built with stronger materials and they’re not as susceptible to damage from weather events or other natural disasters.
The local crime rate is also a consideration for insurance companies when setting rates. Homes in areas with high crime rates are generally more expensive to insure because there’s a greater risk of theft or vandalism.
Finally, the amount of coverage you need and the type of policy you choose can also affect your home insurance rates. If you only need basic coverage, you’ll likely pay less than someone who needs comprehensive coverage. And if you choose a policy with a high deductible, you may also save on your premiums.
Why do home insurance prices vary by state? There are a number of different factors that go into setting rates, including the location of your home, the age of your home, the local crime rate, and the amount of coverage you need. By understanding all of these factors, you can be sure to get the best rate possible on your home insurance policy.
Home Insurance Prices by State (Top 10 Most Expensive States)
Below, we’ve ranked 10 of the most expensive US states for home insurance prices. We have done these calculations based on a $200,000 dwelling in each state.
​1. Oklahoma ($4,193, $1,960 or 88% above the national average)
If you’re looking for affordable homeowners insurance, Oklahoma is not the state for you. In fact, residents of the Sooner State pay the second-highest rates in the nation, with the average premium costing $4,193 per year.
There are a number of reasons why Oklahoma homeowners insurance rates are so high. One is the state’s vulnerability to severe weather. Oklahoma is located in what’s known as Tornado Alley, and it experiences more tornadoes than any other state. In addition, the state is also susceptible to hailstorms and wildfires.
All of this severe weather takes a toll on Oklahoma homes, and insurers are forced to charge high rates to cover the resulting damage claims. Another factor that contributes to high rates is the state’s lack of competition among insurers.
The bottom line is that if you’re looking for affordable homeowners insurance, Oklahoma is not the place to find it. Rates in the Sooner State are among the highest in the nation, so you’ll need to be prepared to pay a premium if you want to insure your home in this state.
2. Kansas ($4,094, $1,861 or 83% above the national average)
As far as US home insurance prices go, Kansas is ranked pretty high on the list. In fact, it’s actually the second most expensive state in the nation when it comes to home insurance rates. The average premium in Kansas is $4,094, which is quite a bit higher than the national average.
There are a number of factors that contribute to the high cost of home insurance in Kansas. One is the state’s location. Kansas is located in what’s known as Tornado Alley, which is a region of the country that’s particularly prone to tornadoes. This increases the risk of damage to homes in Kansas, which in turn drives up the cost of insurance.
Another factor that contributes to the high cost of home insurance in Kansas is the state’s climate. Kansas experiences extreme temperatures, both hot and cold, which can lead to a variety of problems for homeowners. Extreme heat can cause problems like dry rot and other forms of structural damage, while extreme cold can lead to frozen pipes and other issues. These risks are reflected in the higher premiums charged by insurance companies.
If you’re a homeowner in Kansas, there are a few things you can do to try to lower your home insurance rates. One is to shop around and compare rates from different insurers. Another is to make sure you have an up-to-date home inventory so that you can be sure you’re not overpaying for coverage. And finally, you can try to take steps to mitigate some of the risks that contribute to the high cost of home insurance in Kansas, such as installing tornado shutters or making sure your home is well-insulated against extreme temperatures.
3. Nebraska ($3,525, $1,567 or 70% above the national average)
When it comes to US home insurance prices, Nebraska is ranked 3rd highest in the nation. The average premium in Nebraska is $3,800, which is $1,567 above the national average.
There are a few reasons why home insurance prices in Nebraska are so high. One reason is that Nebraska is located in the Midwest, which is generally considered to be a more volatile region when it comes to weather. This means that homes in Nebraska are more likely to suffer damage from severe weather events like tornadoes and hailstorms.
Another reason why home insurance prices in Nebraska are so high is because the state has a high rate of property crime. In Nebraska, there are 2,039 property crimes per 100,000 people. This is significantly higher than the national property crime rate of 1,261 per 100,000 people.
If you’re a homeowner in Nebraska, there are a few things you can do to help keep your home insurance rates down. One thing you can do is to install security features like deadbolts and burglar alarms. You can also raise your deductibles to help lower your premiums.
No matter what, it’s important to compare home insurance rates from multiple insurers before you purchase a policy. By shopping around, you can make sure you’re getting the best possible price on your home insurance.
4. Arkansas ($3,525, $1,422 or 64% above the national average)
It’s no surprise that Arkansas is one of the most expensive states for home insurance. The state has a high rate of natural disasters, including tornadoes and hurricanes, which can cause serious damage to homes. In addition, Arkansas has a large number of homes that are located in flood zones.
All of these factors make it very important to have good home insurance in Arkansas. The average cost of home insurance in the state is $3,655 per year, which is $1,422 above the national average.
There are a few things that you can do to help keep your Arkansas home insurance costs down. First, make sure that you have a good credit score. insurers often use credit scores to determine rates, and a good score can help you get a better rate.
Second, shop around and compare rates from different insurers. Rates can vary significantly from company to company, so it’s important to get quotes from a few different insurers before you choose a policy.
Third, consider raising your deductible. A higher deductible will mean that you’ll have to pay more out of pocket if you need to make a claim, but it can also lead to lower rates.
Finally, make sure that you’re taking advantage of any discounts that you might be eligible for. Many insurers offer discounts for things like installing security systems or taking defensive driving courses.
If you’re looking for home insurance in Arkansas, make sure to compare rates from multiple insurers to find the best deal. And remember, taking a few simple steps to reduce your risk can help you get a lower rate.
5. Texas ($3,525, $1,292 or 58% above the national average)
Texas has the 5th most expensive home insurance rates in the country, at an average of $3,525 per year. That’s 58% or $1,292 above the national average.
There are a number of reasons why Texas has such high home insurance rates. One is that the state is prone to natural disasters like wildfires, hurricanes, and hailstorms. This puts homes at risk of damage, which in turn drives up insurance rates.
Another reason for high home insurance rates in Texas is the state’s large population. More people means more homes, and more homes means more risk for insurance companies. They have to spread the cost of insuring all those homes across their policyholders, which drives up rates.
If you’re a Texas homeowner, there are still ways to save on your home insurance. One is to shop around and compare rates from different insurers. Another is to ask about discounts. Many insurers offer discounts for things like installing security systems or being claims-free for a certain period of time.
No matter where you live, home insurance is a necessary expense. But if you’re in Texas, it’s especially important to make sure you’re getting the best deal on your coverage.
6. Kentucky ($3,082, $849 or 38% above the national average)
According to a recent study, US home insurance prices are ranked highest to lowest, with Kentucky coming in at 6th place. The average cost of home insurance in Kentucky is $3,082, which is $849 or 38% above the national average.
There are a number of factors that contribute to the high cost of home insurance in Kentucky. One of the biggest factors is the frequency of natural disasters in the state. Kentucky is susceptible to a variety of natural disasters, including tornadoes, hailstorms, and floods. This means that insurance companies have to charge higher rates to cover the increased risk.
Another factor that contributes to the high cost of home insurance in Kentucky is the state’s lack of competition among insurers. There are a limited number of insurers operating in Kentucky, which gives them more pricing power.
If you’re a homeowner in Kentucky, there are a few things you can do to help offset the high cost of insurance. One thing you can do is to shop around and compare rates from different insurers. Another thing you can do is to raise your deductible. By doing this, you can lower your premiums significantly.
No matter what, it’s important to make sure you have adequate coverage for your home. The last thing you want is to be underinsured and have to pay out of pocket for damages or repairs. Make sure you understand your coverage and shop around for the best rates to ensure you’re getting the most bang for your buck.
7. Mississippi ($3,042, $809 or 36% above the national average)
Mississippi has the seventh-highest home insurance rates in the United States, according to a recent study. Home insurance in Mississippi costs an average of $3,042, which is $809 more than the national average and 36 percent higher.
The high cost of homeowner’s insurance in Mississippi can be attributed to several factors. The state’s location is one. Because of its proximity to the Gulf of Mexico, the state of Mississippi is frequently hit by hurricanes and other forms of extreme weather. Because of this elevated risk, insurance companies must charge more for coverage.
The value of a home is a major factor in determining the cost of homeowner’s insurance in Mississippi. The state’s median home price of $142,500 is below the national average. Insurers can raise their rates because they will be spending less money on claims.
Homeowners insurance in Mississippi is among the most expensive in the country. Premiums can be expensive, but there are ways to cut costs. One option is to look around at what other insurance companies have to offer. One more is to see if there are any discounts available, such as for having a security system or going a certain amount of time without filing a claim.
9. Colorado ($2,964, $731 or 33% above the national average)
Colorado comes in at 9th place. The average premium in Colorado is $2,964, which is 33% above the national average.
There are a number of reasons why home insurance rates in Colorado are so high. One of the most important factors is the state’s high risk of wildfires. In 2018, Colorado experienced one of the worst wildfire seasons on record, with over 1,000 fires burning more than 500,000 acres of land. The damage caused by these fires was estimated to be around $2.5 billion.
Other factors that contribute to Colorado’s high home insurance rates include the state’s high altitude (which can make homes more susceptible to wind damage), and the fact that it is located in a seismically active region (which can make homes more vulnerable to earthquakes).
Despite the high cost of home insurance in Colorado, it is still important to have coverage in place in case of an emergency. Homeowners should work with their insurance agent to make sure they have adequate coverage for their needs.
10. Missouri ($2,765, $532 or 24%above the national average)
Missouri’s home insurance prices are the 10th highest in the nation, at an average of $2,765 per year. That’s $532, or 24%, above the national average.
There are a number of factors that contribute to Missouri’s high home insurance rates. One is the state’s location in the Midwest, which puts it at risk for severe weather events like tornadoes and hailstorms. Missouri is also home to a number of large cities, including Kansas City and St. Louis, which tend to have higher rates of crime and property damage.
If you’re a Missouri homeowner, there are a few things you can do to try to lower your insurance rates. One is to shop around and compare rates from different insurers. Another is to make sure you have adequate coverage for your needs, but not so much that you’re overpaying for unnecessary coverage. You can also try to get discounts by installing security features like burglar alarms and smoke detectors.
Whatever you do, make sure you’re getting the best deal on your home insurance. It’s important to protect your home, but there’s no need to pay more than you have to.
10 Cheapest States by Home Insurance
Below, we have ranked the 10 cheapest states for home insurance in the US from most expensive to the last one being the absolute cheapest in the country.
10. Maine ($1,310, $923 and 41% cheaper than the national average)
Maine’s picturesque landscapes are complemented by its affordable homeowners insurance rates, boasting an average annual premium of $1,310. This figure stands at 41% cheaper than the national average, a remarkable difference for homeowners. One of the significant factors contributing to these lower insurance premiums is Maine’s lesser susceptibility to natural disasters such as tornadoes or severe storms. The state’s geographic location and climatic conditions contribute to a lower frequency of such events.
Maine’s relatively low crime rate further augments its position as an attractive destination for homeowners seeking to minimize insurance costs. A lower crime rate translates to fewer claims related to theft or vandalism, which in turn, helps in maintaining lower insurance premiums.
The competitive insurance market in Maine is another feather in its cap. A host of insurance companies vie for market share, creating a competitive milieu that often results in better rates for consumers. The regulatory framework governing the insurance sector in Maine also ensures a fair pricing structure, indirectly contributing to the favorable insurance rates observed in the state.
9. Maryland ($1,289, $944 and 42% cheaper than the national average)
Maryland follows closely with an average annual premium of $1,289, which is 42% cheaper than the national average. The temperate climate in Maryland plays a significant role in this regard, mitigating the risk of extreme weather events which could lead to hefty insurance claims. The construction standards in the state are also noteworthy, as they often exceed the national average, ensuring homes are better equipped to withstand adverse conditions.
The state also has a robust insurance regulatory framework that ensures that insurance providers adhere to fair pricing standards, which in turn keeps premiums in check. This regulatory oversight ensures a level playing field among insurance providers, fostering competition and potentially leading to lower premiums for homeowners.
A diversified economy and a stable housing market further contribute to the favorable insurance rates in Maryland. The economic stability often results in fewer insurance claims, which can have a positive impact on insurance premiums.
8. Massachusetts ($1,278, $955 and 43% cheaper than the national average)
Massachusetts, with its rich historical backdrop, also presents an attractive insurance landscape with an average annual premium of $1,278, a figure that is 43% cheaper than the national average. The state’s stringent building codes play a pivotal role in this aspect, ensuring that homes are well-equipped to handle the region’s weather conditions, thereby reducing the likelihood of insurance claims.
The competitive insurance market in Massachusetts also plays a part in driving down insurance premiums. Numerous insurance providers operate in the state, and the competition often leads to better rates for consumers.
Furthermore, the state’s regulatory environment ensures that insurance companies adhere to a fair pricing structure. The oversight provided by the regulatory authorities ensures a level playing field, which in turn, can lead to more competitive pricing and better rates for homeowners.
7. Vermont ($1,214, $1,019 and 46% cheaper than the national average)
Vermont, known for its serene landscapes and a calm demeanor, holds the seventh spot in affordable home insurance with an average annual premium of $1,214, which is 46% cheaper than the national average. The low insurance premiums in Vermont can be largely attributed to its low crime rate and lesser propensity for severe natural disasters. The state’s geographic location shields it from some of the more destructive weather patterns seen in other parts of the country.
The regulatory environment within Vermont also plays a significant role in maintaining low insurance premiums. The state has a set of stringent regulations that govern the insurance industry, ensuring that pricing remains fair and competitive. This regulatory oversight not only fosters a healthy competition among insurance providers but also ensures that the pricing remains within an affordable range for the average homeowner.
Furthermore, the general stability of the housing market in Vermont contributes to lower insurance premiums. A stable housing market often translates to fewer claims, which in turn can lead to lower premiums. The competitive yet regulated insurance market, coupled with a stable housing market and low crime rate, makes Vermont a favorable environment for homeowners seeking affordable insurance premiums.
6. Delaware ($1,210, $1,023 and 46% cheaper than the national average)
Delaware stands as another state where homeowners can enjoy lower insurance premiums. The average annual premium in Delaware is $1,210, making it 46% cheaper than the national average. Similar to Vermont, Delaware benefits from a lower likelihood of severe natural disasters, thanks to its geographic location and favorable climate conditions.
The insurance market in Delaware is characterized by a high level of competition among providers. This competition often drives insurance companies to offer better rates to attract and retain customers. Moreover, the regulatory framework within Delaware ensures that insurance providers adhere to strict standards, which in turn helps in maintaining lower premiums.
In addition, the state has a relatively stable economy and housing market, which further augments its position as a favorable destination for homeowners seeking to minimize insurance costs. A stable economy often translates to fewer insurance claims, which can have a positive impact on insurance premiums.
5. New Jersey ($1,174, $1,059 and 47% cheaper than the national average)
New Jersey follows suit with an average annual premium of $1,174, which is 47% cheaper than the national average. Despite its proximity to the Atlantic Ocean, the state has managed to maintain affordable insurance rates for homeowners. One of the significant factors contributing to this is the stringent building codes enforced within the state, ensuring that homes are built to withstand adverse weather conditions.
The insurance regulatory framework within New Jersey also contributes to the competitive pricing of homeowners insurance. The regulations ensure that insurance providers maintain a fair pricing structure, which indirectly benefits the homeowners by keeping premiums at a reasonable level.
Additionally, New Jersey has a relatively diversified economy which contributes to a stable housing market. This stability often results in fewer insurance claims, which can have a positive impact on insurance premiums. The combination of stringent building codes, a regulated insurance market, and a stable economy makes New Jersey an attractive option for homeowners seeking affordable insurance coverage.
4. New Hampshire ($1,152, $1,081 and 48% cheaper than the national average)
New Hampshire offers a welcoming proposition for homeowners with its average annual premium of $1,152, standing at 48% cheaper than the national average. The state’s lower susceptibility to major natural disasters plays a pivotal role in determining insurance premiums. New Hampshire experiences fewer severe weather events compared to other states, which directly translates to fewer claims and thus lower premiums.
The state also boasts a competitive insurance market. A plethora of insurance providers operate in New Hampshire, fostering a competitive environment that often leads to better rates for consumers. The competitive nature of the insurance market in New Hampshire is further enhanced by the regulatory framework that governs the insurance sector within the state, ensuring that pricing remains fair and competitive.
Additionally, New Hampshire has a relatively low crime rate which further contributes to the lower insurance premiums. A lower crime rate reduces the risk of claims related to theft or vandalism, which in turn helps in maintaining lower insurance premiums.
3. Washington D.C., District of Columbia ($1,114, $1,119 and 50% cheaper than the national average)
The District of Columbia presents a unique case with an average annual premium of $1,114, making it 50% cheaper than the national average. Despite being a densely populated urban area, the District manages to maintain lower insurance premiums. One of the contributing factors is the stringent building codes enforced within the District, ensuring that homes are built to withstand adverse conditions.
The regulatory framework governing the insurance sector in the District of Columbia also plays a significant role in keeping the premiums affordable. The regulations ensure that insurance providers adhere to a fair pricing structure, which indirectly benefits the homeowners.
Furthermore, the competitive nature of the insurance market within the District fosters better rates for consumers. Numerous insurance providers operate in the area, creating a competitive environment that often leads to better rates for homeowners.
2. California ($1,027, $1,206 and 54% cheaper than the national average)
California, known for its diverse geography and climate, holds the second spot with an average annual premium of $1,027, which is 54% cheaper than the national average. Despite facing a myriad of natural disasters like wildfires and earthquakes, the Golden State manages to maintain lower insurance premiums. The state’s stringent building codes play a significant role in this aspect, ensuring that homes are well-equipped to handle the region’s weather conditions.
The competitive insurance market in California also contributes to driving down insurance premiums. Numerous insurance providers operate in the state, and the competition often leads to better rates for consumers.
Moreover, the state’s regulatory environment ensures that insurance companies adhere to a fair pricing structure. The oversight provided by the regulatory authorities ensures a level playing field, which in turn, can lead to more competitive pricing and better rates for homeowners.
1. Hawaii ($440, $1,793 and 80% cheaper than the national average)
Topping the list is Hawaii, with an extraordinarily low average annual premium of $440, which is 80% cheaper than the national average. The state’s isolated geographic location in the Pacific Ocean significantly contributes to its low homeowners insurance rates. Hawaii is less susceptible to many of the natural disasters that commonly afflict other states, such as tornadoes and severe storms, which directly impacts the cost of insurance in a positive manner.
The stringent building codes in Hawaii also play a crucial role in minimizing insurance costs. These codes ensure that homes are built or retrofitted to withstand the specific weather challenges posed by the state’s unique geographic location, including hurricanes and volcanic activity. By minimizing the potential damage from such events, the building codes help in reducing the number of insurance claims, which in turn helps in maintaining lower insurance premiums.
Moreover, the state of Hawaii has a stable housing market and a relatively low crime rate, both of which contribute to lower homeowners insurance premiums. A stable housing market often translates to fewer insurance claims, while a low crime rate reduces the risk of claims related to theft or vandalism.
The regulatory framework governing the insurance sector in Hawaii also supports affordable insurance premiums. The state has established regulations that ensure insurance providers maintain a fair pricing structure, which in turn keeps premiums at a reasonable level. This regulatory oversight, coupled with Hawaii’s unique geographic advantages and stringent building codes, create a very favorable environment for homeowners seeking affordable insurance coverage.
Wrapping Up: Making the Most of Home Insurance Savings
​There’s no doubt about it: US home insurance prices are high. In fact, they’re ranked highest to lowest when compared to other developed countries. But there are ways to save on your home insurance premiums without sacrificing coverage. Here are a few tips:
1. Shop around and compare rates from different insurers. Just because one company has the highest rates doesn’t mean they all do.
2. Consider raising your deductibles. This will lower your premium, but make sure you have enough savings to cover the deductible if you need to make a claim.
3. Ask about discounts. Many insurers offer discounts for things like installing security systems, being claims-free, or insuring multiple properties.
4. Bundle your home and auto insurance with the same company. This can often lead to significant savings.
5. Re-evaluate your coverage every year. Your needs may have changed and you might be able to get by with less coverage than you have now.
By following these tips, you can save on your home insurance without sacrificing coverage. So shop around, compare rates, and ask about discounts to make sure you’re getting the best deal possible.
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