For $250,000 in housing coverage, the national average cost of homeowner’s insurance is $1,383 per year. However, a number of things affect how much your homeowner’s insurance will cost. The physical location has a big impact on premiums. For instance, some regions of the nation are more vulnerable to natural disasters than others, and reconstruction expenses may be higher in some regions. Your final home insurance cost will also be significantly affected by the coverage choices you make, such as dwelling limitations.
Key takeaways
In 2022, the cost of homeowners insurance for a policy with $250,000 in dwelling coverage will be $1,383 a year on average.
Hawaii, Utah, and Vermont will have the least expensive homeowner’s insurance in 2022, while Oklahoma, Nebraska, and Kansas will have the highest average premiums.
Costs for homeowners insurance are increasing, most likely as a result of inflation, disruptions in the supply chain, and rising prices for labor and supplies.
The National Association of Insurance Commissioners (NAIC) study from 2021 states that the typical cost of homeowners insurance is $1,249 per year or $104.08 per month.
Your quoted price for homeowners insurance will depend on elements including location, house value, policy options, and discounts. We at the Home Media reviews team will go through these elements in this review and assist you in locating the best home insurance coverage for your property.
How much does homeowners insurance cost?
In 2019, ASI, one of the insurers in Progressive’s network and a member of our family of businesses, offered home insurance for an average price of $676 ($56/month) to $2,044 ($170/month). The price range is a result of a number of elements that influence homeowners insurance premiums, such as geography, claims history, and the features of your property.
What does homeowner’s insurance cost?
Our research of 2022 house insurance quotes from throughout the nation shows that the average cost of homeowners insurance in the U.S. is $158 per month or $1,899 annually.
However, the price of home insurance is increasing.
Our report on home insurance pricing, which was published in July 2022, indicated that rates are rising across the board, in part because of inflation, rising labor and building expenses, and a rise in natural disasters.
90% of homeowners experienced an increase in house insurance costs between May 2021 and May 2022, with the average increase costing an additional $134 per year.
Remember that your home insurance costs will greatly depend on your location, your home’s age, the cost of rebuilding it, and your history of claims.
Learn more about the various factors that can affect your house insurance rates by reading on.
Methodology & why you can trust our rates
To guarantee independence, knowledge, and accuracy, Policygenius’ instructional guides are authored and fact-checked by certified house insurance specialists, then approved by our Financial Review Council. We arrived at our estimates by examining the house insurance rates offered by Quadrant Information Services for more than 120 different insurance providers nationwide in March 2022.
To ensure the rates we’re comparing are reasonable and accurate for the factor at hand, we adjusted just one variable at a time when examining expenses for various coverage levels and risk factors.
how we arrived at the typical house insurance premiums
States with the largest rises in the cost of house insurance
In numerous states across the U.S., house insurance premiums increased by more than 17% between May 2021 and May 2022, according to our Home Insurance Pricing Report. These states include Arkansas, Washington, and Colorado.
The states with the highest home insurance costs
The average cost of homeowner’s insurance is $1,680 per year, however, premiums drastically vary from state to state, ranging from $781 in Delaware, which has the lowest cost, to $3,383 in Colorado, which has the highest cost.
Homeowners’ insurance cost factors
Location, building materials, coverage choices, prior claims, and your insurance score are just a few of the variables that might affect how much your homeowner’s insurance will cost. For more details on the factors influencing homeowners insurance pricing, see the list below:
Location
The cost of homeowners insurance varies by area and even zip code. If you live in a state where tornadoes, hurricanes, and hail are common, your house insurance premiums may be higher than those of residents in states with less frequent severe weather. Home insurance prices are frequently more favorable in areas with lower construction expenses.
Additional local elements that may impact the cost of homeowners insurance include:
- Homes in coastal areas: Due to a higher probability of natural disasters, homes in coastal areas can sometimes be riskier to insure than ones inland.
- Your ZIP code’s crime statistics: This data can be used by your insurance to estimate your likelihood of making a theft claim.
- Homes close to woods and brush: These buildings are at risk from wildfire and tree damage.
- Closeness to a fire hydrant and a fire station: A fire can be put out more rapidly if there is quick access to water.
Home design
What kind of home do you have is one of the first inquiries home insurance makes. The cost of your homeowner’s insurance can rise as a result of improvements to your home’s construction and other specifications.
For instance, because they are less prone to fires and strong winds, concrete block dwellings often cost less to insure than wood frame homes. In order to determine the risk of insuring the house, your insurer will also inquire about the flooring material, siding type, and even how you heat the house.
Roof construction
The design and form of your roof can significantly impact how much your homeowner’s insurance will cost. The cost of your house insurance is typically cheaper if your roof is made of less flammable asphalt shingles rather than cedar or wood shakes.
The most popular and cost-effective style of roof to install is a gable roof, although they are vulnerable to wind damage. Hip roofs, which have all sides that gently slope downward, are more expensive to install but may result in lower home insurance costs due to their greater wind resistance.
Prior claims and coverage selections
Home insurance companies concentrate on previous claims you’ve made. Multiple losses will probably result in a higher premium since you are more likely to submit more claims.
The deductibles and coverage options you choose for your house insurance could also affect the cost. You might make a small financial gain by dropping supplemental insurance (such as personal injury protection) and raising your liability limits. On the other hand, you can frequently increase your coverage by thousands of dollars with little to no effect on your home insurance premium.
Insurance score
Some states allow home insurers to utilize an insurance score. Each firm has its own formula for figuring out an insurance score, which often combines credit and claims histories. Because there is a link between credit history and insurance risk, insurers value this information. Your house insurance premium will be cheaper the higher your score.
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