Updated Nov 3, 2022
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Homeowners insurance coverage is something that all homeowners must have in place. However, it can be a big expense, and home insurance rates change year after year.
Sometimes changing your insurance company and researching home insurance quotes is well worth it. Our guide will give you insight into how much homeowners insurance is in 2022, where coverage is most expensive, and some things you can do to help lower your homeowner’s insurance.
Any of the providers below can help you get started with homeowner insurance today.
The average cost of homeowners insurance across all states is $1,113 for a $250,000 home. As you increase toward a $500,000 home, the average premium is $2,163. As a whole, for all homes across the United States, the average homeowner’s insurance premium is $1,272.
As you move from one state to another, an insurance company will assess your risk differently. If you live in a state subject to natural disasters, have a harsh climate, or have liability claims in the area that are extremely high, the insurance costs will go up. These averages featured in our chart are based on a house in the $200,000 to $299,000 range.
|Average Homeowners Insurance Premiums for a $200,000-$300,000 Home|
|State||Average Annual Premium||Average Monthly Premium|
|District of Columbia||$900.00||$75.00|
Some states have a high risk of tornadoes or property damage, and it significantly impacts the cost of a home insurance policy. Even when you work with an insurance agent to lower the cost or amount of coverage, it’s hard to get some of these companies down in price.
Oklahoma has a chance for windstorms, and wind can be damaging, especially in older homes. New homes are being built with stronger materials to hold up to the wind, so you may have a chance of getting a lower price with some home insurance companies if your home is newer.
States like Louisiana, Texas, Florida, and Mississippi all have issues with hurricanes from time to time, as well as the flooding and damage that occurs in connection with a hurricane. These states don’t necessarily have the highest-priced homes in the nation, but it is more about assessing the risk and potential of having to replace these homes.
States that have affordable homeowners insurance tend to have a more mild climate. They also are typically not in states where wind and hurricanes can become an issue. Here are five of the most affordable states for homeowners insurance on a $200-$299,000 home.
As you can see, none of these states have significant issues with coast storms. In fact, most are landlocked states that can certainly have issues with fires, but the pricing is still not relatively as high as it is in the states with hurricane and water damage potential. The rates in some areas in Oregon may go up with the increase of fires in the California area. These fires have a chance of moving up the cost at the time, and the average home insurance cost in Oregon could increase.
|City||Average annual cost||Average monthly cost|
|New York City||$1,710||$142|
Most of the homeowner’s insurance quotes from these popular cities will match what the homeowner’s insurance rates are like in the state. Of course, there is some fluctuation in certain areas because of crime rates or population.
You may think that out in the country, the homeowner’s insurance rates would be lower because there are fewer people. However, this can increase your homeowner’s insurance rates because you could be further away from emergency personnel, like a firehouse.
There are plenty of complicated formulas that homeowners insurance companies go through to determine your rates, and that is precisely why they are only good for a single year.
|Company||Average Annual Premium||Average Monthly Premium|
In addition to looking at the area where you live and how that will impact your homeowner’s insurance rates, the rates will also change based on the company. In some areas, Nationwide may be cheaper than State Farm, and in other areas, the opposite will be true.
One thing to remember when getting a homeowners insurance quote is that you will need to get one from several companies and then know how to see whether these policies are different.
You can look at things like policy limits, replacement cost coverage, actual cash value, additional living expenses, personal property coverage, and more. Essentially breakdown how the company came up with the home insurance premium and then compared it to another.
The rates will change from one year to the next, so you may get lower rates from Allstate this year and lower rates from Lemonade next year. The key is to stay on top of your homeowner’s insurance policy renewal dates and look closely at any changes that may have come up in your coverage.
|Dwelling Coverage||Average Annual Premium||Average Monthly Premium|
The dwelling coverage is how much your home insurance coverage is good for. Sometimes you may live in a $500,000 house, but the coverage for the dwelling is just $400,00. This is pretty standard, as this would likely be the cost to rebuild your property should something go wrong.
Many insurance companies will allow you the full amount of your dwelling coverage plus an additional percentage for a potential complete rebuild. The dwelling coverage of your home is essential as it has a significant impact on the annual premium.
Liability coverage and personal property coverage are different types of coverage that are part of your policy but not part of the dwelling coverage limit. Most of the time, when looking at the dwelling coverage of insurance products, the national average is for those with around $250,000 in dwelling coverage.
As you can see, the higher the dwelling coverage, the more you will pay for your policy.
There are quite a few factors that will impact the cost of your home insurance. Some of these, like the home’s square footage, are pretty standard, but others may catch you by surprise. Knowing these costs and how they can impact your quote will greatly help you save money and time choosing the proper homeowner’s insurance company.
Where your house is located will impact the price of your homeowner’s insurance. A company looks at a home in the middle of Kansas differently than a home on the beach in Key Largo. The key is to be aware of your location and how it impacts cost, but there won’t be all that much you can do about this.
Credit history has a big impact on your home insurance costs. Unfortunately, the lower your credit scores are, the higher premiums you will have to pay. In fact, some homeowners are finding that they can save almost $1,000 a year with homeowners insurance if they have good credit. Insurance companies don’t want to chase you down for money, and they make it obvious with their homeowner’s insurance pricing.
For a $250,000 home, you may get a quote for $1,230 if your credit score is perfect. As you move up to poor credit score ratings, expect to pay over $2,000.
Another factor that impacts the homeowner’s insurance cost is the home’s age. The structure’s coverage can end up being a bit higher if the overall concern of the insurance company is that the home is not built to last. In addition, things in your home, like water heaters or air conditioners that are aging, can actually hurt your homeowner’s insurance quote because they are looked at as a hazard.
For a home built in 1960, you can expect to pay about $600 more a year than a home built this year. Of course, the pricing of upgrading your home to a brand new build may or may not be worth the difference in these policy amount changes.
One of the best discounts on your homeowner’s insurance policy will be a hurricane impact discount for having hurricane impact roofing. This is something that is done in newer builds that will help keep the roof in great shape even in a bad storm.
Of course, some roof tiles or shingles may get lost, but this is not nearly as much of a concern as the structure of the roof blowing off. Take a look at the quality of the build of your roof as well as the age, as this can be something that increases the cost of your policy.
Many homeowners worry that they will increase their total policy price after submitting a claim to their homeowner’s insurance. Although we wish this was just a rumor, it can very often be true. Most of the time, the claims history will be analyzed, and for some that had an incident that required filing a claim, the policy will increase by about $300-$600 per year.
However, when looking at the different types of claims, including theft, vandalism, fire, and wind, the wind is the lowest increase in pricing that you will see.
The chance of a home getting hit with a hurricane again and causing the same damage is apparently less risky to an insurance company than a home experiencing theft or a fire.
There are certain modifications and upgrades that you can make to your home that impact your homeowner’s insurance both positively and negatively. For instance, installing a pool will likely increase your homeowner’s insurance as you just have assumed a lot more risk.
In addition, something like a security system could bring the costs of your insurance quote down. Some of these modifications to the home and upgrades you will be in complete control of, so keep that in mind as you make changes around the home.
Some homeowners insurance companies are really strict about things like a trampoline in the yard or even owning a dog. If you have these issues, make sure you talk to your homeowner’s insurance company about ways that you can lower the cost of your policy but still have the home features that you want.
Homeowners insurance covers your home and sometimes even the people in it, but the specifics of the policy are essential to understand. There are some homeowners insurance policies out there that will offer unique coverage where you can pick and choose the things you want to be covered, but these are the basics that you can expect across the market.
The majority of your homeowner’s insurance policy will be made up of dwelling coverage. This is the cost of rebuilding your home. Unfortunately, as building costs fluctuate, so will these dwelling coverage costs. The dwelling coverage will impact your home’s structures and anything like an attached garage. Most policies will look at this from a replacement cost standpoint, making it possible for you to replace your home fully if necessary.
Other structures are a standard on most policies that will be about 15% of the coverage of your dwelling. However, not all homeowners have other structures that need this coverage; therefore, some insurance agents will allow you to remove the coverage. The other structures include things like a garage that is not attached, a fence, or even your driveway.
Personal property coverage is one of the most customizable features of your home insurance policy. The personal property is usually covered at an actual cash value, and you will have to be very careful to look into the specifics of what this plan covers. Typically things like furniture, clothing, televisions, and computers are included as part of the plan.
However, things like jewelry will only be covered to a certain amount, so you may need to add a rider to the policy that increases things like jewelry or fine art coverage. Some companies, like State Farm, will allow you to choose replacement cost coverage, and that will increase the total cost of your policy.
The personal liability coverage of your homeowner’s insurance policy is a great thing to have. Liability insurance on these policies typically ranges from around $100 to more than $500,000.
In addition, many homeowners purchase additional liability insurance, called a personal liability umbrella, to ensure even more protection.
This part of the policy will cover the following:
Both medical payments and loss of use are extras that many homeowners insurance policies will cover. The medical payments are used in case someone falls and hurts themselves at your home and requires medical attention.
Loss of use coverage is for if you lose access to your home and need to stay somewhere else. For instance, if there is a fire until your home is rebuilt, you can use the loss of use coverage to pay for your additional living expenses. This is usually about 20% of your dwelling coverage.
When filing for homeowners insurance, there are some different types that you may or may not be exposed to. These forms are honestly dealt with more by the insurance company than by you as the homeowner. When you deal with a homeowners insurance agent, they will decide which of these forms makes the most sense for applying for coverage for your home. Just be honest about all the home details, and they will work out the rest to get you the best possible deal.
Even with homeowners insurance rates going up, there are still opportunities to save. Luckily you can talk with your providers about discounts and methods to help lower your costs. You have control over some of these and can help make your plan more affordable. As always, before you change any of the policies, make sure that you are aware of the impact it will have on you should you have to file a claim.
There are plenty of home insurance discounts available. In fact, as you look from one homeowner’s insurance company to another, you will find that the discounts vary. Some of the more popular homeowners insurance discounts include.
If you decide to increase your homeowner’s insurance deductible, you could save some money on your plan. However, if you do this, you are taking a risk that is worth considering. Essentially if your homeowner’s insurance is priced at $1,500 with a $500 deductible, you may be able to go to $1,400 with a $1,000 deductible.
If an issue should come up around the home, you will now have to pay out $1,000 instead of the $500. Some homeowners with considerable savings may not even file a claim for a $500 issue. This makes sense to choose a higher deductible and use the policy almost as a safety net.
However, for others that worry about being able to pay the deductible for a claim to be covered, it is important to consider staying at the lower deductible. Although it is a few dollars more out of your pocket each month, you will feel confident in your ability to use the policy should you need it.
Depending on the provider, the quote and difference in price from the large to the smaller deductible may be minimal.
Having a good credit score won’t only help you save money on your homeowner’s insurance, but it will help you save money on everything! From flood insurance to renters insurance, the better credit scores get the best rates out there.
This is simply because insurance companies want to be able to collect their money each month without having to think about chasing you down for it. If your credit score isn’t great right now but it has been improving, it may be worth talking to an agent.
Sometimes they can go to the underwriters at an insurance company and talk to them about the trend seen in your scores. If this trend is headed in the right direction, the chance of your rate going down is pretty good.
Remember that an insurance policy will renew at the end of the year. However, if your credit score has changed, call your insurance provider and let them know. They can rerun a quote for you and see if the rate can go down at all. At this point, you will also have an established history with the company, and that can help save.
One of the best tips of advice that we can give any homeowner is to check into homeowners insurance rates often. So many people purchase a home, get a homeowners insurance policy and then never quote or shop the price again.
This is a mistake.
Each year or every two years, ensure you are looking into the price you are paying and see if it is going up or down. Then compare those costs to other policies in the area.
Before you cancel your current policy to go with something cheaper, make sure to consider talking to your insurance agent first. Sometimes there are changes he or she can make to the policy that will help to improve the pricing before you have to switch policies.
Sticking with the same insurance company is certainly more manageable, so do that whenever you can.
Bundling home and auto insurance can save you hundreds, if not thousands, of dollars a year. When you bundle these costs, you will often save a percentage of both, and at the same time, you will benefit from the ability to pay just one company each month.
Finding the cheapest homeowners insurance requires getting quotes from several companies. When you can compare both pricing and coverages from several different companies, your overall policy costs have a chance of being considerably lower.
There is a formula that many people use to calculate a general idea as to how much a homeowners insurance policy will cost. This formula includes dividing the value of your home by $1,000. After you have that number, you multiply it by $3.50 to give you an average annual rate. Of course, those living in Hawaii and those in Michigan could get the same number, but their policies will be entirely different from a pricing standpoint.
The best home insurance deductible is the one that works with your personal budget. However, most homeowners find the $1,000-$2,000 deductible range a good spot for them. If you experience a significant loss, it may only cost you $1,000 to replace it. This is the amount of money you will have to have in a savings account should you run into an issue like this at some point.
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