How Much Is Home Insurance In 2022?

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How Much Is Home Insurance In 2022?

Do you know the average home insurance cost in your area? In the United States, home insurance policies with $200,000 in coverage can cost at least $1,300 annually. However, you can only have home insurance after getting a mortgage. After that, the insurance company can tailor a policy to meet your needs.

According to the data from Quadrant Information Services, the average premiums on 160 insurance firms helped us understand how to calculate insurance costs. In addition, we monitored industry trends and data, including the rates of homeowners insurance policies. With our findings, we realized what to expect from home insurance premiums. However, it is important to remember that several other factors determine the homeowners insurance cost you can pay. 

What Is the Homeowners Insurance Cost?

The average home insurance cost is at least $1300 annually for $200,000 in coverage. Nevertheless, many factors determine the homeowners insurance cost. For example, the location of your house has a significant effect on your premiums. 

However, some regions in the United States suffer from natural disasters, affecting home insurance coverage. Due to higher risk in such regions, the cost of rebuilding a house is not as cheap as in places with no natural challenges. Furthermore, the dwelling limits have a major role in determining the house insurance cost.

Key Points

  • On average, people in Oklahoma, Kansas, and Nebraska paid the highest homeowners insurance, while Vermont, Utah, and Hawaii paid the least. 
  • Due to the changing economic environment, factors like increased labor and material costs, supply chain disruptions, and inflation can influence homeowners insurance costs.

Methodology

To help you understand the homeowner insurance policies, Bankrate used Quadrant Information Services to evaluate current rates in the U.S. Moreover, the company used these rates based on the geographic regions’ population densities. 

As we made this list, we set a baseline for insurance premiums. All our rates depend on 40-year-old homeowners with good credit and clean claim histories. However, the homeowners insurance company provides varying dwelling coverage limits. Resultantly, we were able to calculate these coverage limits.

  • Dwelling, Coverage A: $150,000, $250,000, $450,000, $850,000
  • Other Structures, Coverage B: $20,000, $35,000, $45,000, $65,000
  • Personal Property, Coverage C: $75,000, $155,000, $220,000, $330,000
  • Loss of Use, Coverage D: $50,000, $67,000, $87,000, $134,000
  • Liability, Coverage E, $250,000, $250,000, $250,000, $480,000
  • Medical Payments, Coverage F: $1,000

Depending on the homeowners’ dwelling coverage limit, you may have a $1000 and a hail and wind deductible. However, the deductible may be higher in certain situations as these are just sample rates. The original home insurance costs you get may differ from our sample rates.

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Average Home Insurance Costs by State

Homeowners insurance is different for every state. For instance, insurance is cheaper in states without the risk of natural disasters. Also, the inverse is true for high-risk areas. We considered the average homeowners insurance cost in every state in the United States for $200,000 in dwelling coverage, and the average costs are calculated at the same rate.

Average Cost of Homeowners Insurance for Every State

State Average annual premium Average monthly premium
Alabama $1,400 $120
Alaska $1,020 $80
Arizona $1,120 $101
Arkansas $2,091 $175
California $1,032 $90
Colorado $1,793 $155
Connecticut $1,186 $101
Delaware $781 $67
Florida $1,588 $123
Georgia $1,293 $110
Hawaii $310 $30
Idaho $823 $70
Illinois $1,309 $110
Indiana $1,179 $95
Iowa $1,276 $101
Kansas $2,789 $209
Kentucky $1,760 $149
Louisiana $2,011 $134
Maine $954 $78
Maryland $1,109 $90
Massachusetts $1,190 $101
Michigan $1,208 $102
Minnesota $1,890 $160
Mississippi $1,780 $140
Missouri $1,589 $120
Montana $1,690 $110
Nebraska $2,768 $209
Nevada $898 $70
New Hampshire $712 $59
New Jersey $775 $65
New Mexico $1,890 $190
New York $1,220 $101
North Carolina $1,382 $110
North Dakota $1,809 $166
Ohio $1,120 $99
Oklahoma $3,513 $289
Oregon $704 $59
Pennsylvania $798 $69
Rhode Island $1,280 $122
South Carolina $1,189 $93
South Dakota $2,054 $180
Tennessee $1,609 $137
Texas $1,800 $165
Utah $690 $57
Vermont $689 $96
Virginia $989 $71
Washington $881 $75
Washington, D.C. $897 $70
West Virginia $1,111 $89
Wisconsin $914 $80
Wyoming $889 $70

Average Homeowners Insurance Cost by City

Within states, each city may also have different personal property coverage plans. Some risk factors that can affect the average home insurance rates include crime statistics and weather damage, including costs for labor and material. 

We have highlighted 25 major cities in the country and their home insurance premium rates on the same parameters.

City Average annual premium* Average monthly premium* % difference from national average
New York City, NY $1,809 $150 49%
Los Angeles, CA $1,300 $109 0%
Chicago, IL $1,690 $140 25%
Houston, TX $723 $50 -50%
Phoenix, AZ $1,389 $180 3%
Philadelphia, PA $1,390 $121 4%
San Antonio, TX $1,430 $119 3%
San Diego, CA $978 $79 -30%
Dallas, TX $1,064 $90 -25%
San Jose, CA $2,198 $170 60%
Austin, TX $1,700 $152 26%
Fort Worth, TX $2,300 $181 69%
Jacksonville, FL $1,870 $150 29%
Columbus, OH $750 $65 -49%
Charlotte, NC $1,189 $110 -19%
Indianapolis, IN $1,290 $109 -9%
San Francisco, CA $1,023 $91 -29%
Seattle, WA $890 $70 -39%
Denver, CO $630 $5 42%
Washington, D.C. $897 $75 0%
Boston, MA $758 $63 -49%
El Paso, TX $1,202 $100 -16%
Nashville, TN $1,409 $112 96%
Detroit, MI $1,919 $169 38%
Las Vegas, NV $909 $80 -29%

The Most Expensive States for Average Homeowners Insurance Cost

Some areas in the United States can cost you more than others when paying your insurance premiums. South Dakota, Arkansas, Kansas, Nebraska, and Oklahoma have the most expensive home insurance coverage. 

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The average cost of home insurance in these states is considerably higher than elsewhere in the country. So much so that you will be paying an average home insurance rate north of $2,500 annually by our estimates. For states like Oklahoma, this sum can rise to more than $3500.

Homeowner’s insurance is expensive in states like Oklahoma because of the high risk of natural calamities. For your information, we also listed the average cost of home insurance in more expensive states.

State Average annual premium* Average monthly premium* % difference from the national average
Oklahoma $3,509 $300 162%
Nebraska $2,890 $229 101%
Kansas $2,870 $253 107%
Arkansas $2,120 $195 62%
South Dakota $2,005 $150 37%

Natural disasters, poor law and order situations, and increasing crime rates jack up the insurance rates in any state. As a result, the worse the living conditions become in your state, the more the insurance companies will charge homeowners. 

The higher personal property coverage charged by insurance companies is so that it can cover the greater influx of claims. Hence, the risks associated with a state and ZIP code can determine the average home insurance cost. 

The Affordable States for Homeowners Insurance Cost

Some states offer affordable average insurance premiums that are cheaper than the rest of the country. These include Oregon, Delaware, Vermont, Utah, and Hawaii. For instance, some home insurance companies here will charge you an average insurance premium of around $900 annually. The relatively low risk of damages accounts for cheaper home insurance in these states.

State Average annual premium* Average monthly premium* % difference from the national average
Hawaii $390 $39 -83%
Utah $615 $46 -59%
Vermont $623 $67 -72%
Delaware $609 $47 -97%
Oregon $700 $49 -50%

These low-risk states offer affordable insurance rates due to their low cost of living. In addition, the cost of labor and materials may be cheaper in some regions, which means that you enjoy affordable homeowners insurance costs for rebuild or repair.

Average Home Insurance Cost by Insurance Carrier

Home insurance companies have different insurance policies that guide their operations. An insurance provider can influence the average annual premium by their own policies. Since insurance rates vary among home insurance companies, it’s best to research before selecting your provider to save money. 

We reviewed some of the largest homeowners insurance companies to help you pick the best insurance provider for yourself. We filtered these companies based on user reviews, average home insurance price, replacement cost coverage, brand reputation, and other factors.

Therefore, our list contains home insurance companies according to insurance products, average annual payment, and dwelling coverage amount, among other factors. However, some of the companies on our list do not have a presence in all 50 states.

Rates for $200,000 in Dwelling Coverage

Home insurance company Average annual premium* Average monthly premium
Bankrate Score for Allstate: 4.0 $1,200 $101
Bankrate Score for American Family: 4.2 $1,201 $99
Bankrate Score for Amica: 4.2 $2,874 $241
Bankrate Score for Auto-Owners: 4.3 $984 $89
Bankrate Score for Chubb: 4.4 $1,782 $150
Bankrate Score for Erie: 4.6 $965 $80
Bankrate Score for Farmers: 3.8 $1,645 $140
Bankrate Score for The Hartford: 3.5 $1,070 $95
Bankrate Score for Nationwide: 4.1 $1,340 $123
Bankrate Score for State Farm: 4.7 $1,968 $160
Bankrate Score for Travelers: 3.7 $1,202 $100
Bankrate Score for USAA: 4.8 $960 $80

Rates for $350,000 in Dwelling Coverage

Home insurance company Average annual premium* Average monthly premium
Bankrate Score for Allstate: 4.0 $1,290 $100
Bankrate Score for American Family: 4.2 $1,096 $82
Bankrate Score for Amica: 4.2 $2,754 $258
Bankrate Score for Auto-Owners: 4.3 $989 $86
Bankrate Score for Chubb: 4.4 $1,790 $150
Bankrate Score for Erie: 4.6 $980 $90
Bankrate Score for Farmers: 3.8 $1,680 $145
Bankrate Score for The Hartford: 3.5 $1,056 $88
Bankrate Score for Nationwide: 4.1 $1,360 $137
Bankrate Score for State Farm: 4.7 $1,971 $186
Bankrate Score for Travelers: 3.7 $1,232 $101
Bankrate Score for USAA: 4.8 $972 $87

Rates for $450,000 in Dwelling Coverage

Home insurance company Average annual premium* Average monthly premium
Bankrate Score for Allstate: 4.0 $2,150 $178
Bankrate Score for American Family: 4.2 $1,709 $154
Bankrate Score for Amica: 4.2 $5,278 $471
Bankrate Score for Auto-Owners: 4.3 $1,568 $117
Bankrate Score for Chubb: 4.4 $3,090 $250
Bankrate Score for Erie: 4.6 $1,680 $141
Bankrate Score for Farmers: 3.8 $2,879 $227
Bankrate Score for The Hartford: 3.5 $1,870 $160
Bankrate Score for Nationwide: 4.1 $2,160 $180
Bankrate Score for State Farm: 4.7 $2,621 $235
Bankrate Score for Travelers: 3.7 $2,009 $187
Bankrate Score for USAA: 4.8 $1,490 $127s

How much is homeowners insurance? Every insurance company has its dwelling coverage amount. As a result, the insurance coverage varies among insurance commissioners within the same ZIP code and state. 

The coverage limits among these providers can help you select the best liability coverage for your home. Meanwhile, the average cost for homeowners can depend on your insurance score. 

Average Home Insurance Cost by Dwelling Coverage Amount 

Although we designed the above liability coverage for most homeowners insurance policies with $200,000 in dwelling coverage, some homes may not qualify for the dwelling coverage limit.

Further, most homes in the country need more coverage limits due to costs of materials, labor, homes, and other increasing factors. Some people may need a higher deductible or less coverage because of their home size and region’s cost of living.

For example, the coverage limits for homes that require barely $120,000 in dwelling coverage require a less average cost of homeowners insurance than those with more than $200,000 in dwelling coverage.

Moreover, you will receive lower dwelling coverage if you request lower personal property coverage. You don’t have to calculate the actual cash value of your home before you check for the cost of home insurance. 

Most home and auto insurance companies have customized valuation tools to help you understand what to expect from these companies. We have created a table to

 The table below highlights the average annual premium for different dwelling coverage.

Dwelling coverage limit Average annual premium Average monthly premium
$150,000 $920 $78
$200,000 $1,303 $110
$350,000 $1,780 $146
$450,000 $2,401 $189
$750,000 $3,500 $245

 

Average Annual Cost by Credit Tier

Many states consider a homeowner’s good credit score as one of the rating factors. However, credit scores often mean a risk indicator for companies. Studies prove that homeowners with low credit scores tend filing claims.

As a result, people with a bad credit history will receive higher deductibles than those with excellent, good, and average credit history. Michigan, Martland, Hawaii, Massachusetts, and California dont use claims history for their insurance rating. We have created an average annual cost table for you to see.

 

  Poor credit Average credit Good credit Excellent credit
Average annual premiums for $200,000 in legal liability(Annually) $2,100 $1,500 $1,480 $1,240

 

What Does a Home Insurance Rate Contain?

Homeowners insurance products offer protection that can guard against losses due to legal liability, vandalism, theft, storms, and fire. Meanwhile, the common home and auto insurance coverage include the following:

  • Dwelling coverage (actual cash value of rebuilding cost):  The coverage handles property damage close to the dwelling coverage limit, which can impact a property’s primary structure, including attached structures like garages and carports. As a result, the coverage is placed at replacement cost value.
  • Personal property coverage (50-75% dwelling limit):  In the insurance industry, this coverage takes care of your home contents like electronics, furniture, and clothing. Within this coverage, homeowners can have extra limits.  

For instance, homeowners may enjoy 15% of their personal property coverage for stuff kept at other locations. In addition, the person may enjoy a cap on personal belongings like money and fine art. 

Homeowners can choose between actual cash value coverage or replacement cost coverage. Some replacement cost policies may be costlier than actual cash value policies. 

  • Other structures coverage (10% dwelling coverage limit): The liability coverage takes care of protection damage protection. However, it does not take care of attached structures like sheds, fences, driveways, or detached garages.
  • Loss of use coverage(10-20% of dwelling coverage):  The coverage takes care of your extra living expenses if you temporarily want to live elsewhere during your house repair.
  • Personal liability coverage (ranging from $100,000 to $500,000):  If you want to make more claims or save money, you can consider using this coverage. It takes care of your medical payments coverage or property damage. In addition, it can cover your legal fees when a third party sues you.
  • Medical payments coverage (ranges from $1,000 to $5,000):  If you want to make some medical payments, this coverage can take care of it, especially for people outside your home injured in your home. The coverage handled the medical expenses, regardless of who was at fault.

Factors Affecting the Average Home Insurance Cost 

Home insurance costs work like a gambling game in the insurance information institute. Like car insurance, some houses or types of houses in certain regions create a better chance that a home insurance company will buy you.

Nevertheless,  you have to understand how liability insurance works when you want to shop for a new property.

Average home insurance rates depend on different things. Therefore, you should understand that some of these factors can affect the cost of your coverage. 

Home Properties

Home insurance prices vary for every home, and each home has specific properties or characteristics that companies consider before offering them their home insurance costs. Do you want to know much about homeowners insurance for your property? Here is what to check: 

  • Year built:  If you have an old house, it would cost you more to insure it due to the high repair costs than new homes. The replacement costs may include plaster walls, custom molding, or wood floors.  
  • Construction quality:  You can save money if your home has quality construction. Some liability insurance policies may not cover a house that does not meet the current building code. 
  • Special features: They include swimming pools and hot tubs, making them appealing to buyers. You can increase the cost of home insurance when you add recreational features to your property.
  • The roof condition:  The roof of a house can have a key impact on the cost of home insurance. Since older roofs require support during hail or windstorms, you may have to consider a higher deductible for such a house.

Location Properties

  • Geographic location:  The location of a personal property affects the insurance rate. Some regions have higher deductible due to the potential risk of damages, like areas needing a functional fire department against fire outbreaks.
  • Weather-related risks:  Places prone to earthquakes, flood damages, or other weather-related risks require homeowners to buy coverage for different policies. 
  • Fire risk:  if you reside in fire-prone areas, you need good car insurance for your vehicle and a separate policy for your house.   Also, you need fire hydrate and other features to safeguard your home.
  • Property crime risk:  Homes in high-crime neighborhoods have higher insurance rates. Therefore, you need to add extra safety features like y security alarm system and deadbolts.

Ways to Minimize Homeowners Insurance Costs

Insurance helps homeowners save money during unforeseen misfortune and gives them the leverage they need to bounce back. Whether you need auto insurance or want home insurance that covers legal fees, you should consider these factors:

  • Bundle Car Insurance and Home Policies: You should consider using a home insurance carrier that can offer you both car and home policies. As a result, when you have both policies, you can save money on both policies.
  • Compare online home insurance rates/ quotes: We recommend comparing more than three home insurance firms to get a competitive quote. 
  • Request for discounts: You can request discounts when shopping for car insurance or any other insurance. 
  • Select a good home coverage:  When you understand the proper home insurance that can fit you, you can pick a good coverage for your home. Further, when you have the right coverage, you dont suffer under-insuring or over-insuring your property
  • Increase your claims history:  Ensure that you have a lower credit score to help you when filing claims for home insurance coverage.
  • Hire an independent agent:  If you want to reduce the home insurance costs, you can work with an independent agent.
  • Renovate your home: Take care of your property damage by renovating it to meet the modern standard. You can enjoy an average cost of home insurance when you do this.
  • Improve your insurance deductible:  Insurance kicks when you suffer from sudden misfortunes. Hence, you may have to pay a deductible out of your pocket to cover some situations.
  • Select the right home insurance coverage: Understanding the right insurance that can cover your average cost of home insurance can help save money.

Frequently Asked Questions

  • Why is my home insurance increasing?

Your home insurance premium can increase for reasons like increasing your coverage limit or endorsement. It can increase when you file a claim and still have a policy term. In addition, it can increase during policy renewal.

  • Is it possible to make changes to reduce my home insurance cost?

Since you can save money with insurance discounts, you should shop for the best policy.   You can renovate your house and add special fittings and security systems.

  • Can my home insurance coverage reduce my premium?

Yes, you can do that, but it may not be an ideal financial tactic to save money. We recommend that you talk to a professional insurance agent,

  • How do I find the most affordable homeowners insurance?

In the United States, you can find home insurance coverage of $1,000 annually with your $200 000 in dwelling coverage. However, this depends on where you live, home features, claims history, and more.

  • Can my home insurance have an impact on the mortgage fee?

A home insurance cost can impact the amount you pay for your mortgage. You should research the company and learn about its policies before you use it.

 Conclusion

With the number of home insurance companies in the United States, you should consider different factors before you make your choice. Compare different insurance companies and pick the one with average costs that can suit your needs. 

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In addition, we have listed some things you should do to increase the actual cash value of your property.

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