Average Cost of Home Insurance

Average cost of home insurance has grown significantly all over the world for the last 10 years and it has reached the rate of $1,000 – that is 50% higher than before!

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Are you tired of paying big sums of money for your homeowners policy? We see your points. To save your time and money, we offer to get to know with results of our analyses, states with the lowest and highest rates, famous insurance companies that offer good deals, and other useful data.

Average Home Insurance Rates

As for U.S., the month and annual rates depends on the companies and individual needs of every client. By analyzing all of them, we could estimate and sort out average rates. Here are they presented per year:

  • Alabama ‒ $1,340;
  • Arizona ‒ $976;
  • California ‒ $974;
  • Florida ‒ $2,055;
  • Hawaii ‒ $1,055, etc.

States with the Highest Costs

Florida and Texas are atop of all with rates of 90% and 80% higher accordingly. In these regions, tornadoes, tropical storms, and other weather warnings are heard more often.

States with the Lowest Costs

The lowest costs would be the best and calmest places to live in as here you can avoid earthquakes, tornadoes, and other types of hurricanes. Oregon ($574), Idaho ($590), Utah ($634), and Washington ($695).

It’s rather hard to analyze all states with their fall and growth in rates, thus we would like to indicate those of them that require the biggest sums of money. It may seem rather predictable, but the highest rates are noticed in states with risks of natural disasters. Oklahoma, Louisiana, and Mississippi complete this Top 5 – their rate is 67% higher than the average across the country.

The last state from this set of the lowest rates is Wisconsin ($686) – it seems to be a bit different from this top; still, its large cities such as Green Bay are also considered at the low risk of hazards.

Reasons for Home Insurance Losses

According to Insurance Services Office, about 98% of all plans are used to cover property damage. Taking into account the most frequently seen claims for the period of 2011 to 2015, the reasons for them were the following:

  • Hail and wind;
  • Theft;
  • Freezing and water damages;
  • Fire;
  • Lighting, etc.

Analyzing the items themselves that are indicated in claims more often, jewelry takes the first place if we talk about theft. It’s noteworthy that theft appears to be not the only reason for its coverage since some people mention that during some emergencies jewelry becomes damaged or simply lost. If to mention some other items that are also indicated in these claims, they include, but are not limited to apparel, electronics, furniture, tools, appliances, sport goods, rare books, mattresses, beds, etc.

The Best Companies to Offer Good Home Insurance Rates

To get the best rates that you can afford for sure, you should compare different quotes from various insurers. Thus, here they go:

  • State Farm Mutual takes about 20% of the whole cheap home insurance market and is rated as A++ Company with $16 billion premiums being written.
  • Allstate can boast of $7 billion premiums and 9% share in this sphere.
  • Farmers Insurance Groups holds the 3rd place by having 6% share and $4.8 billion premiums.
  • The 4th place is occupied by Liberty Mutual. Its premiums amount to $4.6 billion.
  • USAA deservedly takes the 5th position with its $3.8 premiums and 4.9% rate of the country’s market.

How Does the Cost of Your House Influence the Rate?

This question should be analyzed separately since it presents itself one of the most determining factors for indicating average cost of homeowners insurance. Even if your location, age, and other factors are considered and don’t have a big impact on the cost, the price of the building alone might make a noticeable difference.

For example, houses are usually estimated with coverages of $250,000, $500,000, and $750,000. These sums are taken from different states and so we have tried them in different areas to trace the changes in rates. In conformity with our experiments and stats, the rates for these 3 types of houses were the following: $1,216, $1,993, and $2,695 accordingly. As you can see, the cost of your house is one of the most determining factors while estimating the home insurance cost.