Home Insurance: Monthly Cost Breakdown

The average cost of home insurance in the U.S. is $2,601 a year, or $217 a month, based on Insurance.com's rate analysis. However, this figure is not set in stone and rates can vary for several reasons. For example, dwelling coverage is a major factor in home insurance rates. The average home insurance rate for a dwelling coverage of $200,000 is $2,005, while the cost of a homeowners insurance policy with $600,000 in dwelling coverage averages $4,677.

Average home insurance cost by state

The average cost of home insurance in the US is $2,230 per year for $300,000 in dwelling coverage, but rates vary by state.

The average cost of home insurance differs from state to state. Oklahoma is the most expensive state for home insurance, with an average rate of $5,495 a year, or about $458 a month. In contrast, Hawaii is the cheapest state for home insurance, with an average rate of $515 a year, or about $43 a month.

Other states with high home insurance rates include Texas, Nebraska, and Colorado, while Delaware, Vermont, and New Hampshire are among the cheapest.

The variation in home insurance rates by state is influenced by several factors, including the risk of natural disasters, severe weather conditions, and the cost of rebuilding homes. For example, states prone to hurricanes, hail storms, and tornadoes tend to have higher home insurance rates. Additionally, the standard home insurance policy varies by state, with some states excluding coverage for certain perils like hurricanes or wildfires, which can impact the average rate.

Factors affecting home insurance rates

In addition to location, other factors that influence home insurance rates include the age and condition of the home, the replacement cost or value of the home, the homeowner's credit history, and the coverage limits and deductibles selected.

Homeowners can take steps to reduce their home insurance rates, such as raising their deductible, comparing quotes from multiple companies, and asking about available discounts.

Average home insurance cost by coverage level

The average cost of homeowners insurance in the U.S. is $2,601 per year, or $217 per month, for $300,000 in dwelling coverage. However, rates vary depending on the level of coverage and other factors.

The cost of homeowners insurance varies depending on the level of dwelling coverage. For example, with dwelling coverage of $200,000, the average home insurance rate is $2,005 per year, while the cost of a homeowners insurance policy with $600,000 in dwelling coverage averages $4,677 per year. The higher the replacement cost of your home, the more you'll pay for insurance.

| Dwelling Coverage Amount | Average Annual Insurance Cost |

|---|---|

| $200,000 | $2,005 |

| $300,000 | $2,601 |

| $400,000 | $3,231 |

| $600,000 | $4,677 |

| $1,000,000 | $7,552 |

It's important to note that these rates are based on a standard policy with a $1,000 deductible and may not include additional coverage for natural disasters such as hurricanes or earthquakes. The cost of home insurance can also vary significantly by state and ZIP code, with some states having average rates as low as $613 per year, while others have rates exceeding $5,000 per year.

Average home insurance cost by ZIP code

The average cost of homeowners insurance in the US is $2,601 per year, or $217 per month, for a policy with $300,000 in dwelling coverage and liability and a $1,000 deductible. However, rates vary by state and ZIP code.

ZIP codes, including neighbouring ones, are exposed to different risks and could have significantly higher or lower home values, which are two of the main drivers of insurance rates. As a result, average home insurance prices can fluctuate drastically from area to area.

The cheapest ZIP code for home insurance in the US is 96813 in Honolulu, Hawaii, with an average annual cost of $610. The most expensive ZIP code for home insurance is 33012 in Hialeah, Florida, with an average annual cost of $5,931.

Other Factors Affecting Home Insurance Rates

Location is one of the biggest factors in home insurance rates. States that experience more natural disasters, such as hurricanes, hail storms, and tornadoes, tend to have higher home insurance rates. For example, Florida and Texas, which are prone to hurricanes and extreme weather, have some of the highest home insurance rates in the country.

In addition to the state and ZIP code, other factors that can impact home insurance rates include:

• The age and size of the home
• Claims history
• Credit score (except in California, Massachusetts, and Maryland)

Average home insurance cost by company

The average cost of home insurance in the US is $2,601 a year, or $217 a month, based on a policy with $300,000 in dwelling coverage and liability, and a $1,000 deductible. However, rates vary depending on the company and the level of coverage.

According to Forbes, the average cost of home insurance with $350,000 of dwelling coverage is $729 per year with Progressive, making it the cheapest option. In contrast, Travelers is the most expensive option, with an average annual rate of $3,528 for the same level of coverage.

NerdWallet also found that State Farm is the cheapest widely available company, with an average annual rate of $1,935. USAA offers even cheaper policies, at $1,875 per year on average, but these are only available to active-duty military, veterans, and their families. Farmers is the most expensive company on the list, with an average annual rate of $2,415.

Bankrate's analysis of policies with $300,000 in dwelling coverage found that Erie and USAA had the cheapest average home premiums, while Farmers, Chubb, and Allstate were the most expensive carriers.

Other factors affecting home insurance rates

In addition to the insurance company and level of coverage, home insurance rates are influenced by various factors, including:

• The location of the home: States that experience more natural disasters or have a higher cost of living tend to have higher premiums.
• The age of the home: Older homes may be more expensive to insure due to outdated features and the cost of bringing them up to modern safety and building codes.
• The building materials used: Homes constructed with materials that have higher fire ratings or are more wind-resistant may qualify for discounts.
• The claims history of the home: Filing a claim will likely result in higher rates at renewal.
• The credit history of the homeowner: Home insurance companies in most states consider the credit history of the homeowner when determining rates, as data shows that those with lower credit scores tend to file more claims.
• The deductible: A higher deductible typically leads to lower insurance rates, as the homeowner takes on more of the financial risk.

It is important to note that rates can vary widely, and it is always a good idea to compare quotes from multiple companies to find the best option for your specific needs.

Average home insurance cost by deductible

The deductible on your home insurance is the amount you pay out of pocket when making a claim. A higher deductible typically results in lower insurance rates because you're removing risk from the insurer.

According to Bankrate, the average annual rate for $300,000 in dwelling coverage with a $1,000 deductible is $2,230. With a $2,500 deductible, the rate drops to $2,100.

Forbes Advisor found that the average cost of home insurance with a $500 deductible is $1,703 per year for a $350,000 dwelling limit. Increasing the deductible to $1,000 lowers the rate to $1,595 per year.

NerdWallet's analysis found that raising the deductible from $1,000 to $2,500 saves more than 12% annually.

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