The average rate for home insurance is $2,777 per year based on insurance.com’s analysis of 2022 data. A number of factors affect the cost of home insurance, and where where you live is one of the most important. Home insurance costs in each state are affected by factors like weather and construction costs, as well as more specific factors.
some states, like oklahoma, see rates nearly double the average, while in states like hawaii, homeowners pay less than half the average.
Next, we’ll look at the average 2022 home insurance rates by state and see why some states are more expensive than others.
average cost of homeowners insurance by state
While many factors go into calculating your rate, where you live is one of the most important. Homeowners in states that are prone to hurricanes, hail storms, tornadoes, and earthquakes tend to pay more for home insurance. insurance.com’s analysis of the rates of the main insurers for almost all zip codes in the country confirms this.
oklahoma, kansas, nebraska, arkansas, texas and south dakota are the most expensive states for home insurance among the common coverage levels analyzed by insurance.com. Among the least expensive states for home insurance are Hawaii and California.
As you’ll see in the homeowners insurance cost by state chart below, oklahoma is the most expensive state for homeowners insurance, $2,540 more than average national for the level of coverage analyzed. we show average residential rates for three other common coverage levels further down the page.
Which state has the highest homeowners insurance rates?
oklahoma has the highest average cost of homeowners insurance at $5,317, according to an analysis of rates by insurance.com. Below, you’ll see the five most expensive states for home insurance.
Which state has the lowest homeowners insurance rates?
Hawaii is the least expensive state for homeowners insurance, with an average rate of $582, according to a nationwide 2022 homeowners insurance rate analysis. Below are the top five least expensive states for homeowners insurance.
compare homeowners insurance rates by zip code
What you pay for coverage depends on many factors, but one of the biggest variables is where you live. our home insurance calculator allows you to get a home insurance estimate for your zip code at various levels of coverage. you’ll see the average rate, as well as the highest and lowest of the major carriers.
Comparing homeowners insurance rates is the fastest route to lower rates. Choosing a higher deductible, making sure you get all the discounts you can, and not filing too many claims can also ensure you get the lowest possible insurance rates for your home.
average homeowners insurance rates by state and coverage level
The cost of homeowners insurance varies not only depending on where you live, but also on the coverage you choose. in the following sections we discuss several different levels of coverage. homeowners coverage is the replacement coverage for the home itself and has the largest impact on rates.
all of these rates use a $1,000 deductible and $300,000 liability.
$200,000 in homeowners coverage per state
Homeowners in oklahoma pay the highest insurance rates for homeowners coverage of $200,000. By comparison, the cost of home insurance is the lowest in Hawaii, at $440 a year for the same coverage limits.
$300k homeowners insurance
for homeowners insurance with $300,000 in home coverage, oklahoma has the highest rate at $5,317 and hawaii has the lowest rate at $582 based on 2022 analysis by insurance.com.
Take a look at the full list below.
Note that the dollar differences in parentheses are those that are greater than the national average.
$400,000 in homeowners coverage per state
with coverage of $400,000, the highest average annual rate is $6,387 in oklahoma and the lowest average annual rate is $749 in hawaii.
$500,000 in homeowners coverage per state
Below are the average annual home insurance rates for $500,000 home coverage and $1,000 deductible.
How much does homeowners insurance cost on average?
The average annual cost of homeowners insurance is$2,777 for $300,000 homeowners coverage and $300,000 liability coverage > based on 2022 rates.
The national average annual cost for home insurance for common coverage levels, based on a rate analysis by insurance.com, is as follows.
what to take into account when taking out home insurance
When you buy a homeowners insurance policy, you decide the amount of coverage for the following:
- medical payments
- other structures – 10%
- personal property – 50%
- loss of use – 20%
- Age. Older homes have old wiring and plumbing, so there is a higher risk of starting a fire or flooding a basement.
- building materials. How your home is built affects insurance rates.
- deductible. a higher deductible means lower rates.
- Claim History. Claim history includes both claims you filed and claims filed by previous owners.
- credit history. Almost all states allow insurers to consider a person’s credit history.
- weather (areas experiencing more natural disasters will likely have higher premiums)
- population density
- close to an area that could lead to claims, such as woods (fire hazard) or dangerous highways or intersections (cars crashing into your living room)
- proximity to a fire department and fire hydrant
- area claims history
- construction (brick/frame)
- occupation (owner/tenant)
- protection (fire department rating)
- exposure (residential vs. commercial neighborhood)
Your coverage limits for the following are typically a set percentage of your home coverage limit, as shown below:
You also choose a home insurance deductible amount, which applies to claims for damage to your home or belongings. deductibles generally come in amounts of $500, $1,000, $1,500, $2,000 and $2,500 >. The higher your deductible, the lower your rate.
You must purchase enough homeowners coverage to equal the full replacement cost of your home. it’s a good idea to get at least $300,000 of liability coverage to ensure sufficient coverage.
It’s important to learn how to estimate the cost or replacement value of your home because the amount helps you determine how much homeowners coverage to purchase.
Medical payments coverage pays for injuries to guests in your home, regardless of fault. Medical payments differ from liability insurance in significant ways, primarily in that it is for minor incidents and has very low limits of $1,000 or $5,000. the last amount of $5,000 is recommended.
how to find the best home insurance companies
When shopping for home insurance, you want to do more than compare average homeowners insurance rates. After all, the true test of an insurer is customer service and how claims are handled.
Insurance.com’s annual ranking of the Best Home Insurance Companies lists the top insurers in customer service metrics. These are the top-rated home insurance companies for 2022, according to Insurance.com’s Average Rate Analysis, J.D. power and a.m. best ratings and discounts available.
factors that affect the cost of homeowners insurance
Many factors affect home insurance rates. include
Another thing that can affect rates is homeowners insurance discounts. insurance companies offer dozens of discounts. Some of the biggest discounts include those for getting a new home, combining your home insurance with your auto insurance, and upgrading your wiring, plumbing, and heating.
how does location affect home insurance?
Location is one of the most important factors in your home insurance rates.
Insurers consider many factors when judging location:
Homeowners insurance companies base rates in part on location, which can go far beyond the state level, said Daniel Burl, CPCU, CIC, CRM, Property & Casualty Insurance Expert Witness, Fortworth, Tex. .
daniel said that, generally speaking, insurers base rates and premiums on a home’s coverage:
a part of a state may have higher rates because there is more crime. or another part of the state may have lower rates because severe weather losses are less frequent.
“It’s not one size fits all,” Daniel said.
Living near a full-time fire station with a nearby fire hydrant plays a big role in your home insurance rates. The reason an insurer wants a house near a fire department and hydrant is that there is less chance of her house burning down if she lives near a fire station. Having a fire hydrant nearby also means that firefighters can get started on a house fire faster than if the fire hydrant were down the street, or even miles away.
insurance.com in 2022 commissioned quadrant information systems to record home insurance rates from major insurers in each state for nearly every zip code in the country for 10 levels of coverage based on various dwelling limits and deductibles. Owner Profile is a 35 year old married applicant with an excellent insurance score insuring a new business ho-3 policy on a home built in 2000 with a frame frame and composition roof. other structures: 10%. loss of unpaid use: 10%. personal property in arrears: 50%. Guest medical limit: $5,000. personal property: 50% coverage of the dwelling for the actual cash value.
frequently asked questions
*florida rates will vary based on the addition of a hurricane deductible and can be much higher.