2024 Average Homeowners Insurance Rate at $2,777 per year
A recent report by Insurance.com, found that the average homeowners insurance rate in the U.S. came in at $2,777 per year which breaks down to $231 a month. The average was based on coverage levels of $300,000 in dwelling and liability and a $1,000 deductible.
When Insurance.com ran the numbers, Oklahoma was the most expensive state for homeowners insurance with an average premium of $5,317 per year. On the other side of the spectrum, Hawaii has the lowest rates for coverage, averaging $582.
States that are prone to natural disasters, such as wildfires, hurricanes, and tornadoes (Oklahoma gets plenty of tornadoes) tend to have higher insurance rates than states that rarely experience disasters. Coastal homeowners tend to pay higher premiums than those that live more inland.
Highest Homeowners Insurance Rates
According to the Insurance.com report, the following are the most expensive states for homeowners coverage. Many of them are located in Tornado Alley and are prone to severe weather:
- Oklahoma: Average premium of $5,317/year.
- Kansas: Average premium of $4,939/year.
- Nebraska: Average premium of $4,893/year.
- Arkansas: Average premium of $4,201/year.
- Texas: Average premium of $4,142/year. -> Get Texas Home Insurance Quotes
Lowest Homeowners Insurance Rates
When it comes to the states with the lowest rates for homeowners insurance, the Insurance.com report found:
- Hawaii: Average premium of $582/year.
- California: Average premium of $1,380/year. – > Get California Home Insurance Quotes
- Washington D.C.: Average premium of $1,520/year.
- Vermont: Average premium of $1,540/year.
- New Hampshire: Average premium of $1,551/year.
Factors Insurance Companies Consider
Insurance companies look at a number of factors when setting your homeowners premium. In addition to the size of your home and age of your home, they also look at location factors. Here are just a few of the factors that insurers consider:
- Weather
- Population density
- How close you are to high-risk areas such as woods, rivers, lakes oceans.
- Proximity to a fire department and fire hydrant
- Claims history for the area
How to Save on Homeowners Insurance
If your state falls on the most expensive list there are a few things you can do to help keep your homeowners insurance affordable:
- Shop your coverage: This is one of the best ways to lower your premium. Insurance companies rate risk differently which can result in dramatic differences in premium quotes. Shop your coverage with at least five different insurance companies.
- Discounts: Insurers offer a variety of discounts, and they can help lower your premium. Bundling your homeowners coverage with your auto insurance is a great way to save. Insurers typically offer a discount for monitored security systems.
- Deductible: Insurers will lower your premium if you raise your deductible so putting up your deductible can help save a bit of money. Make sure you can afford whichever deductible you choose.
- Upgrade your home: Upgrading your roof to wind and hail resistant materials can result in a big discount as can adding a sprinkler system. Ask your insurer about upgrades you can make to your home that will lower your premium.