Last Updated: May 19, 2021
Are you thinking about home insurance?
Or maybe reviewing your current insurance policy to get the best price?
Well, several factors can help you save money. We have made a list of 23 facts and statistics on the average home insurance cost to help you out!
But first, let’s get through the basics:
Average Home Insurance Cost Figures (Editor’s Choice)
- Home insurance rates in the U.S. differ, from a low of $337 annually in Hawaii to $3,575 in Florida.
- The average homeowner insurance costs have a deductible between $500 and $1,000.
- The annual home insurance in Louisiana is $1,722 If you own a home around 1,900 to 2,300 square feet, expect an increase in insurance rates.
- A poor credit score could increase your average home insurance cost premiums as much as 91%.
- House fires occur every 88 seconds in the United States, according to the home insurance prices.
- Wind damage accounts for 25% of property damage and is one of the largest reasons for homeowners’ insurance claims.
- While details of endorsements may vary, coverage ranges from $15,000 to $30,000 at a cost of $25 to $65 per year.
- Most companies offer a premium discount on homes less than 10 years old; some offer discounts on those less than 25 years old.
- Most insurance companies require you to insure your home for a minimum of 80% of the insurance replacement cost.
Homeowner’s insurance provides financial settlement should your home be damaged. It also provides liability protection if someone is injured on your property. Your homeowner’s insurance may cover the damage to the exterior and interior of your home and your possessions inside. It all depends on the specific package.
Average Homeowners Insurance Statistics
1. Home insurance rates in the US range from $337 annually in Hawaii to $3,575 in Florida.
The cost depends on your zip code and differs from state to state. However, according to recent data, Americans can expect to pay about $3.50 for every $1,000 of their home’s value. The average American pays $94.33 for monthly home insurance costs. This is a total of $1,313 annually. Most homeowners will end up paying somewhere around this number depending on the size and value of their home.
But there are several other components that can influence what you end up paying for insurance.
The specifics of what is and is not covered by your home insurance package will depend on several elements. They include your provider, your premium, and your deductible. Most insurance packages have insurance for the most typical “named perils”:
- Smoke damage
- Electrical strikes
- Collisions with aircraft and vehicles
2. The average homeowner insurance costs include a deductible that ranges between $500 and $1,000.
If costs are an issue, take a higher deductible. This usually provides a smaller premium. A $1,000 deductible, instead of a $500 deductible, can spare you up to 25%. This doesn’t carry separate policies. Flood insurance or floating policies raise your insurance cost. For example, hailstorms, windstorms, and earthquake policies all have individual deductibles.
3. The annual home insurance in Louisiana is $1,722; the nation’s highest because of the claims filed after Hurricane Katrina.
(Source: Value Penguin)
Every standard homeowner’s insurance policy excludes insurance for natural disasters like an earthquake and flood. Make sure to check with your agent to determine if you require the extra liability coverage. The cost of those additions such as flood insurance or floating policies could well exceed the price of your homeowner’s insurance policy.
4. The average premium increases by 9% after 1 claim.
(Source: Insurance Information Institute)
Certain types of claims are more likely to boost your insurance rates. One claim might not look like enough, but it can affect the average cost of home insurance numbers significantly. It can raise the premiums as high as 9%. If you live in Maryland or Connecticut, plan on a 21% raise after just 1 insurance claim. On the other hand, Texas policies hardly raise after a claim. Even New York policies only raise an average of 1%.
5. Bigger homes, at 1,900 to 2,300 square feet, can expect an increase in insurance rates.
People are buying bigger homes. So, insurance corporations have calculated the cost of rebuilding your home and replacing it to determine how much insurance coverage homeowners should certify for. For homes that report high-end fittings such as granite countertops, an insurance corporation will raise homeowners’ insurance rates. Replacing the countertops can be very expensive.
6. Bundling auto insurance and house insurance saves you an average of 16%.
You can keep 15% or so by bundling your homeowner’s insurance with your other insurance policies, like auto and life insurance. But you won’t save as much bundling renters insurance and auto insurance. In this case, the savings would be cut in half, at just 8%.
7. A poor credit score could increase the average home insurance cost premiums by as much as 91%.
Credit-based insurance scores are lawful in most states. Unless you live in Hawaii, California, or Massachusetts, your insurance provider may request to see your credit history to figure out your liability. In the US, 85% of agencies use the score to establish premiums.
Consumers who have no great debts, regularly pay off their credit cards in full, and do not have a history of missed payments, will be perceived as a more responsible homeowner. They may enjoy lower home insurance rates. So, don’t pick up out any considerable loans or make serious purchases when you’re closing in on a new home. They could negatively impact your credit score and make coverage more costly.
8. Only 41% of renters carry renters insurance.
With an average of $190 per year, renters’ insurance is a great deal. Renter’s insurance deductibles can differ based on what you choose to pay. The average deductible varies between $500 and $1,000 per year. The most costly state for renter’s insurance is Mississippi. The least expensive is South Dakota.
Homeowners Insurance Cost
9. The insurance on a condo may cost between $100 and $400 per year.
(Source: Nerd Wallet)
The figure depends on the same aspects as a home, such as the age of the condo as well as location. A greater factor, though, is what the condo association’s insurance policy covers. Often, you only need to cover the interior part of your condo.
10. House fires occur every 88 seconds in the United States.
(Source: Insurance Information Institute)
Researching the home insurance prices, we found out that, in 2018, over 380,000 residential properties burned. House fires generated over $11 billion in house damage during the year. Here’s how this affected the insurance prices:
Insurance companies based the insurance values on closeness to a fire station because rapid emergency response often reduces damage. The condition of your local fire service also plays a part in your insurance rate. Homeowners living in rustic areas, or those serviced by volunteer firefighters, usually pay higher insurance premiums.
11. Wind damage accounts for 25% of property damage and is one of the largest reasons for homeowners’ insurance claims.
(Source: Insurance Information Institute)
Weather-related claims top the charts for claims, average home insurance cost data shows. Wind damage holds the number one spot. The next strongest claim is for non-weather related water damage (leaking pipes). In catastrophic conditions, such as a hurricane or an earthquake, separate policies for flood and earthquake will deal with the damage. This is fundamental if you are located in a significant-risk area.
12. Flood insurance costs an average of $700 per year.
Average homeowners insurance policies do not cover the flood damage. In fact, some insurance corporations do not provide services for homes in flood areas. Other insurance companies sell private flood insurance. Or they provide coverage through the National Flood Insurance Program, carried out by the Federal Emergency Management Agency. In either instance, homes in flood areas require additional insurance.
Around 12% of homeowners carry a flood coverage policy. It’s not surprising that the homes in greatest jeopardy are in Florida.
13. Rhode Island tops the charts with the highest flood insurance premiums.
Rhode Island bears the highest average flood home insurance prices of $1,200 per year. Maryland displays some of the smallest flood insurance premiums. Low-risk areas can cost as little as $129 per year, while higher-risk ones go up to $540 per year.
14. Typically, earthquake insurance costs between $100 and $300 a year.
(Source: Insurance Information Institute)
The cost of earthquake insurance differs based on many aspects – where you live, your closeness to a fault area, and the construction components used in your home. Your home’s age, foundation, and retrofitting also factor.
According to average homeowners insurance rates, standard dwelling policies rarely cover damage created by earthquakes. Many insurance firms offer earthquake endorsements or separate earthquake policies. The California Earthquake Authority, a state government agency, provides earthquake insurance for California homeowners and renters.
15. A monitored security alarm can save you up to 20% on insurance premiums.
Insurers will likewise provide you an advantage on house insurance cost if you install a smart home security system. It seriously reduces the chances of your home getting broken into and robbed. That preserves the insurance company, too. There is a relatively lower risk of having to make an insurance payout due to theft. Even unmonitored alarm systems may save you up to 5%.
60% of burglars ignore homes with a security system. It might not block 100% of burglaries, but the likelihood is in your favor.
16. While details of endorsements may vary substantially from company to company, coverage ranges from $15,000 to $30,000 at a cost of $25 to $65 per year.
Homeowner’s insurance firms provide commodities named “floaters,” “riders,” or “endorsements”. According to homeowner insurance price guidelines, an endorsement is any change to your insurance policy whether adding something or eliminating it. Using endorsement refers to your personal property. Most insurance firms will set special limitations on valuable personal property.
If you require increasing your coverage level for these items, you would need to add an endorsement. Normally, things that are subject to specific insurance limits are:
- $200 limit on money, gold, coins
- $1,500 limit on jewelry, watches, furs
- $2,500 limit on silverware
- $1,500 limit on watercraft, trailers
- $2,500 limit on firearms
- $2,500 limit for on-premises business property
- variable limit on electronics.
These objects are the biggest issues that impact how much is home insurance estimated at.
Data on Home Insurance Companies
17. Most companies offer a premium discount on homes less than 10 years old; some offer discounts on those less than 25 years old.
Old houses usually cost more to insure. That’s because repair costs generally run higher than for newer homes. Repairing or changing features increases the typical home insurance cost. The deduction can be 50% for brand-new houses. It’s only 25% for five-year-old ones and likely 5% or less for older homes.
18. Most insurance companies require you to insure your home for a minimum of 80% of the insurance replacement cost.
The whole point of home insurance is to help you out financially if your home goes through a great loss. A significant part of the replacement cost is called the 80/20 rule.
But what does that mean?
Well, your home must be insured to at least 80% of the measured replacement cost for it in order for you to be entirely covered. House insurance cost facts underline that, if you cannot insure your home for 80% of the replacement cost, your insurer will not cover the full cost to reconstruct the home. They will even assess a penalty on a partial loss claims.
19. Amica Mutual boasts a 95% retention rate, meaning that most consumers who switch their homeowners’ policies to Amica Mutual stay with the company.
Amica Mutual earned the top spot as the best homeowner’s insurance based on their performance. This corporation obtained significant records in all categories, including:
- customer satisfaction
- policy offerings
- the billing process
- policy information
20. Erie Insurance is the 9th largest homeowner insurance company in the US with an A+ rating for financial stability.
(Source: Erie Insurance)
Average housing insurance costs data finds that Erie Insurance’s small-cost policies might be just what you’re searching for:
Erie promises 24/7 client service and around the clock help with needs. It also offers assured replacement cost of your home if you require to file a claim. Erie also provides customers with the option of establishing selections when putting together their policies to meet their demands. Besides basic homeowner’s insurance, clients can include extra insurance for earthquakes, flooding, water backup, as well as for jewelry and high-end antiques.
21. State Farm has an A++ for financial strength.
(Source: State Farm)
Average house insurance cost article, or any other on insurance, couldn’t go without mentioning this company. State Farm is a firm that provides homeowner’s coverage along with auto and life coverage options. It also provides discounts for users who bundle several policies, along with discounts for home security systems, impact-resistant roofing systems, and larger deductibles.
22. Allstate has an A+ rating for its financial strength as a company.
(Source: Access Allstate)
According to the data collected on home insurance average cost, Allstate is another one of the most popular national insurance firms that offer personalized coverage for homes. Allstate lets homeowners choose from their selection to set up policies that satisfy their particular needs. This also includes extra insurance for floods and identity theft restoration. They offer a multi-policy discount, claims-free discount, and 5% savings when you sign up for electronic payments.
23. Farmers Insurance received an A+ rating for its financial strength in early 2019.
(Source: Market Watch)
Wrapping up the list of data on homeowners insurance average cost is Farmers Insurance. Farmers Insurance offers three levels of insurance: standard, enhanced, and premier. The standard policies are adapted to families just starting out. Enhanced policies have greater insurance limits and extra components. The premier policies have the highest limits on insurance and personal property. They can even hold guaranteed replacement cost insurance for the home if precise requirements are realized.
Insurance firms use several rating norms to determine your annual home insurance premium. Local factors such as weather patterns and earthquake history perform a great role in the final cost. Consumer security laws and violation rates also factor into the equation. As our list on the average home insurance cost shows, some homeowners can pay less than $30 per month.
It’s a good solution to plan in advance and not wait until you’ve invested in your home before considering a policy. A “heads-up” visit to your insurance professional can set the table for the best possible coverage. That way there are no surprises with your policy.
Don’t wait! Act now.