Average homeowners insurance cost in 2024 | Bankrate (2024)

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What are the five cheapest states for homeowners insurance?

The states with the least expensive average annual homeowners insurance premiums are Vermont, Delaware, New Hampshire, Alaska and West Virginia. Getting familiar with home average home insurance costs in these states can help you plan your budget. Below, you can see the average cost of home insurance coverage in these states and how the prices compare to the national average.

• Vermont: $806 per year — 64 percent below national average
• Delaware: $966 per year — 57 percent below national average
• New Hampshire: $972 per year — 57 percent below national average
• Alaska: $986 per year — 57 percent below national average
• West Virginia: $987 per year — 57 percent below national average

What are the five most expensive states for homeowners insurance?

The states with the most expensive average annual home insurance premiums are Nebraska, Florida, Oklahoma, Louisiana and Kansas. In each of these states, the average price of home insurance exceeds $4,000 per year, and in the two most expensive states — Nebraska and Florida — homeowners pay over $5,000 per year, on average. The higher rates are likely due to a higher risk of widespread home damage; many of these states are in an area of the country where tornado damage is relatively common. The average cost of homeowners insurance in these states is outlined below.

• Nebraska: $5,655 per year — 149 percent above national average
• Florida: $5,531 per year — 144 percent above national average
• Oklahoma: $4,846 per year — 113 percent above national average
• Louisiana: $4,296 per year — 89 percent above national average
• Kansas: $4,153 per year — 83 percent above national average

*Rates are for $300,000 in dwelling coverage

The threat of natural disasters plays a significant role in determining your home insurance cost: the more likely that damage is to occur, the more likely that insurance companies are to have to pay out claims. Think about it this way: after a severe weather event, it’s likely that many homeowners will file a claim for storm-related damage. To make sure there is enough money in reserve to handle a large volume of claims, insurers tend to charge more expensive rates to homeowners in high-risk weather areas. Knowing the weather-related risks associated with your state and ZIP code can help you make informed home insurance decisions.

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Home insurance rates are known to fluctuate frequently, but you can rely on Bankrate to offer you the latest options available.

Home insurance rates are known to fluctuate frequently, but you can rely on Bankrate to offer you the latest options available.

Home insurance rates are known to fluctuate frequently, but you can rely on Bankrate to offer you the latest options available.

Average home insurance cost by dwelling coverage amount

Dwelling insurance — also known as coverage A — is the limit your insurance company will pay to repair or rebuild your home’s physical structure when damaged by a covered peril. Having the appropriate level of coverage may help financially protect one of your biggest financial assets. If you have a mortgage on your home, your financial lender may have certain minimum dwelling coverage requirements you must fulfill as a condition of your loan.

It is also important to note that other parts of your insurance policy, such as other structures, personal property and loss of use — typically listed as coverage B, C and D, respectively — are usually based on percentages of the dwelling coverage. For example, if you have $200,000 worth of insurance for dwelling coverage, you probably have $20,000 or 10 percent of coverage A allotted for other structures coverage. Depending on your state, you may also have separate deductibles for wind or other storm damage. That additional deductible will also likely be calculated as a percentage of your dwelling coverage.

While selecting lower coverage limits may save you some money on your policy premium, it may undercut the coverage you need throughout the rest of your policy. The proprietary rate data below highlights how dwelling coverage limits affect average homeowners premiums.

Learn more:How much home insurance do you need?

Home insurance rates are known to fluctuate frequently, but you can rely on Bankrate to offer you the latest options available.

Average home insurance cost by credit tier

In most states, your credit history could be used as an insurance rating factor. Depending on where you live, home insurance companies will generally review your credit history when you apply for a quote. This is because credit can be an indicator of risk — insurance actuarial data show that those with lower credit scores tend to file more claims compared to those with higher credit scores. As a result, home insurance for people with bad credit is generally more expensive compared to those with average, good and excellent credit. If you own your home with a partner, their credit history may also impact your rates.

Not all states factor in credit, however. California, Hawaii, Maryland and Massachusetts do not allow the use of credit for insurance rating purposes.

Home insurance rates are known to fluctuate frequently, but you can rely on Bankrate to offer you the latest options available.

Average home insurance cost by claims history

Damaging events can happen to even the most responsible homeowner. If your home was damaged by an event covered by your policy, like wind, fire or theft, or someone sues you for injuries sustained at your residence, your home insurance policy could step in to cover the damages. However, a surcharge could be added to your policy at renewal.

Home insurance rates are known to fluctuate frequently, but you can rely on Bankrate to offer you the latest options available.

Average home insurance cost by deductible amount

Your deductible is another factor that can impact the cost of your home insurance. Generally, the higher your deductible, the lower your rate. When you set a high deductible, you take on more of the risk that would otherwise be transferred to your homeowners insurance company. In turn, your carrier will usually offer you a cheaper premium.

A high deductible usually means higher out-of-pocket expenses in the event of a covered claim, so choosing a deductible you can comfortably pay with no warning is essential. While selecting a high deductible can be a valid cost-saving measure for some homeowners, others might experience financial hardship if they need to file a claim and can’t afford their deductible. Additionally, your lender may issue maximum deductible limits under the terms of your loan.

To provide a baseline, below you’ll find average rates for some of the most common home insurance deductible amounts:

Home insurance rates are known to fluctuate frequently, but you can rely on Bankrate to offer you the latest options available.

Average home insurance cost by home age

The age of your home is also a factor that home insurance companies consider when determining your premium. Older homes might be more expensive to build back after a loss, especially if you need to bring them up to modern safety and building codes. Plus, an older home is more likely to be built with harder-to-source materials, which can also make repairs more expensive. Below is a look at how much an average home insurance policy might cost depending on the age of a home.

*Rates are for $300,000 in dwelling coverage.

Home insurance rates are known to fluctuate frequently, but you can rely on Bankrate to offer you the latest options available.

Average home insurance cost by home characteristics

Every home is different, which means insurance companies rate each home on a case-by-case basis. Your home’s specific characteristics will play a role in determining how much you pay for homeowners insurance.

• Roof condition: The age and condition of a home's roof impact the cost of home insurance rates. Insurance companies can charge more for a home with an older roof since it is more susceptible to windstorms and hail damage than a newer one. Some providers have age restrictions and only offer insurance to homeowners with roofs under a certain age, usually between 15 and 20 years old or newer. Roofs beyond 20 years old can typically qualify for actual cash value coverage, which is more affordable but has a lower claim payout.
• Construction materials: Roofs and exterior walls constructed of materials with higher fire ratings or are more wind resistant, like metal roofs or brick structures, may qualify the policy for additional discounts. On the other hand, special features, like a cedar shingle roof, marble tile or antique woodwork can have higher replacement value due to the cost of materials, availability and the skilled labor needed for repairs.
• Increased liability concerns: Attractive nuances features like swimming pools, trampolines and even playground equipment can increase your liability as a homeowner. If you have any of these features, your insurance company can raise your rate to account for the additional risk and require additional safety measures, such as a fence with a lock. Certain dog breeds can also be a liability risk that results in a higher premium. Some insurance providers require dogs to complete a certified training course to lower the risk of a dog bite lawsuit.

Here are some talking points you can keep in mind when speaking with your agent. Having specific questions ready ahead of time will help your agent quickly identify the appropriate endorsem*nts and liability limits.

• Do you have a dog?
• Do you have a swimming pool, trampoline or any other attractive nuisance on your property?
• Do you frequently entertain guests in your home?
• Do you have a home-based business?
• Do you have any personal items or collections that need special coverage, such as jewelry, art, furs or valuable stamps?
• Do you live in a moderate- to high-risk area prone to floods, earthquakes or wildfires?
• Have you upgraded or replaced your roof recently?

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