Top Five Most & Least Expensive States for Homeowners Insurance

10 Feb

One of the major costs of owning a home is properly insuring it. The cost of homeowners insurance can vary dramatically by state but regardless of where you live, you are most likely paying more for homeowners coverage than you did a few years ago. 

According to the National Association of Insurance Commissioners, home insurance rates have gone up nationally almost 47% in the last 10 years. ValuePenguin ran the numbers to see which states had the most and least expensive homeowner insurance rates and depending on where you call home it could be good news or bad news. 

While the national average came in at a fairly affordable $1,445, if you lived in tornado prone Oklahoma you can expect to fork up around $2,559 for coverage while residents of Delaware can rest easy, their average premium is a mere $598. 

Let’s have a quick look at the top five most/least expensive states for homeowners coverage.

Most Expensive States for Homeowners Insurance

Homeowners in the top five most expensive states are paying dramatically higher insurance premiums. Residents of Oklahoma are paying 77 percent more than the national average while South Carolina homeowners fork up 60 percent more. The top five most expensive states are the only states where the annual premium crosses the $2,000 annual threshold. Here are the top five most expensive states for homeowners coverage:

  1. Oklahoma                  $2,559
  2. Kansas                       $2,461
  3. Texas                          $2,451
  4. South Dakota             $2,364
  5. South Carolina           $2,321

While there are a number of factors that push up the cost of homeowners insurance, weather is most likely the main driver of high rates in these states. They are all prone to tornado’s, hurricanes or other severe weather that can quickly damage a home. 

Hail damage has become a major issue in Texas and Oklahoma while South Carolina has had to deal with a major hurricane in the last few years. Severe weather risk will always push up the cost of homeowners insurance as it can do tremendous damage, very quickly. 

Least Expensive States for Homeowners Insurance

One the flip side of the coin, homeowners in the least expensive states are saving a ton of money each year on homeowners coverage. In Delaware, residents are paying 58.6 percent less than the national average while New Hampshire homeowners pay 46.5 percent less. The five cheapest states for homeowners insurance are:

  1. Delaware                    $598
  2. Vermont                     $614
  3. Pennsylvania             $640
  4. Utah                            $711
  5. New Hampshire         $773

While the reason these states are so cheap for homeowners coverage is a bit of a mystery, the majority of these states are not prone to severe weather which is one of the main drivers of high homeowner premiums. 

Other factors that insurers consider:

  • Location of home: Where you live will impact your premium. Insurers look at crime rates, fire risk and even how far it is to the nearest fire station.  
  • Age of home: The older your house, the more you will pay for coverage. Older materials and wear and tear can increase the risk of something breaking (pipes for example) that results in an expensive claim. 
  • Building materials: Insurers look at the materials used to build your home and if they feel it is at risk of rotting or vulnerable to fire you could end up paying more for coverage. Consider using wind or fire-resistant roofing materials to help lower your insurance bill. 
  • Pets: Your insurer is on the hook if Fido bites someone so if you have a dog breed that is considered risky (pit bulls are an example) you will pay more for coverage regardless of whether your pet has ever bitten anyone. 

Where Your State Falls on the List

Here are the complete listings so you can see where your state falls on ValuePenguins list and where the average premium in your state falls:

  1. Oklahoma                               $2,559
  2. Kansas                                   $2,461
  3. Texas                                      $2,451
  4. South Dakota                         $2,364
  5. South Carolina                       $2,321
  6. Minnesota                              $1,952
  7. Montana                                 $1,939
  8. Missouri                                  $1,914
  9. North Dakota                         $1,901
  10. Alabama                                 $1,850
  11. California                                $1,826
  12. Colorado                                $1,813
  13. Nebraska                                $1,749
  14. Florida                                    $1,727
  15. Georgia                                  $1,713
  16. Connecticut                            $1,712
  17. Louisiana                                $1,568
  18. Arizona                                   $1,528
  19. Michigan                                 $1,493
  20. Mississippi                             $1,442
  21. New Jersey                            $1,430
  22. Iowa                                        $1,421
  23. West Virginia                         $1,416
  24. Rhode Island                         $1,414
  25. Kentucky                                $1,407
  26. Illinois                                     $1,405
  27. Maryland                                $1,392
  28. Alaska                                    $1,356
  29. Virginia                                   $1,341
  30. Wisconsin                               $1,313
  31. New Mexico                           $1,284
  32. Wyoming                                $1,263
  33. Arkansas                                $1,250
  34. Tennessee                             $1,241
  35. Washington                            $1,235
  36. Ohio                                        $1,214
  37. Oregon                                   $1,208
  38. Massachusetts                      $1,168
  39. Hawaii                                    $1,083
  40. Nevada                                   $1,047
  41. North Carolina                       $992
  42. New York                               $974
  43. Idaho                                      $940
  44. Indiana                                   $901
  45. Maine                                      $849
  46. New Hampshire                     $773
  47. Utah                                        $711
  48. Pennsylvania                         $640
  49. Vermont                                 $614
  50. Delaware                                $598


Tips to lower your homeowners premium

Regardless where your state falls on the list there are a number of ways to lower your premium. Here are a few tips to bring your homeowners rates down:

  • Shop Your Coverage: This is the best way to lower your home insurance premium. Insurers rate risk differently so premium quotes can vary dramatically. Shop at least five different insurance companies and always make sure you are comparing apples to apples when it comes to coverage levels and deductibles.
  • Upgrade Your Home: This can be particularly helpful if your home is on the most expensive to insure side of the list. Installing a wind and impact resistant roof, storm shutters and getting your mechanicals off the ground can result in big discounts on your policy. If wildfire is an issue in your area, consider having wildfire mitigation done on your property. 
  • Raise Your Deductible: If you can afford to double your deductible you should see a big discount on your premium. Always choose a deductible that you can easily afford in the event you have to make a claim. 
  • Discounts: Insurers offer lots of home and auto insurance discounts so make sure you are getting all of the discounts that you are qualified to receive. Ask your agent to do a discount review to make sure all available discounts are being applied to your policy. 

Tags: , , , ,