Understanding The Monthly Breakdown Of Home Insurance Costs

The average cost of home insurance in the United States is $1,406 per year, or about $117 per month. However, this figure can vary widely depending on factors such as location, the age of the home, the coverage level, and the insurance company. For example, the average annual cost of home insurance in Oklahoma is $5,495, while in Hawaii, it is only $515. Similarly, the average monthly cost for a policy with $300,000 in dwelling coverage is $179, but this can range from $802 to $3,987 per year depending on various factors.

Average home insurance costs by state

The average cost of home insurance in the US is $2,511 per year, or $209 per month. However, rates vary by state, with some states having much higher or lower rates than the national average.

Cheapest States for Home Insurance

The five cheapest states for home insurance are:

• Vermont: $806-$895 per year
• West Virginia: $952 per year
• New Hampshire: $963-$970 per year
• Delaware: $966 per year
• Oregon: $1,006 per year

Most Expensive States for Home Insurance

The five most expensive states for home insurance are:

• Florida: $6,366 per year
• Louisiana: $6,140-$3,528 per year
• Nebraska: $5,588-$3,957 per year
• Oklahoma: $5,495-$4,025-$5,858 per year
• Kansas: $4,103-$3,570 per year

Factors Affecting Home Insurance Costs by State

The cost of home insurance varies by state due to differences in the risk of natural disasters, weather events, and crime rates. For example, states prone to severe weather like tornadoes and hurricanes tend to have higher home insurance rates. Additionally, the cost of living and the price of building materials and labor can also impact home insurance rates, as these factors affect the cost of rebuilding or repairing homes.

Other factors that can affect home insurance rates include the age and condition of the home, the presence of high-risk features like swimming pools or aggressive dog breeds, and the credit history of the homeowner.

Average home insurance costs by company

The average cost of home insurance in the US is $2,511 per year, or $209 per month, according to a recent study. However, the cost varies depending on the insurance company and the coverage level.

Erie Insurance

Erie Insurance offers competitive rates for homeowners insurance. The average annual rate for a policy with $300,000 in dwelling coverage is $1,578, which is 27% less than the national average. Erie is known for its strong customer service and comprehensive coverage options.

USAA

USAA provides insurance services to active-duty military personnel, veterans, and their families. Their home insurance policies are highly affordable, with an average annual rate of $1,431 for $300,000 in dwelling coverage. This is 34% lower than the national average. USAA is recognised for its exceptional customer service and financial stability.

Auto-Owners Insurance

Auto-Owners Insurance is another affordable option for homeowners. Their average annual rate for a policy with $300,000 in dwelling coverage is $1,406, which is 35% less than the national average. Auto-Owners is distinguished for its personalised coverage options and efficient claims handling process.

Nationwide

Nationwide is a well-known insurance company that offers competitive rates for homeowners insurance. Their average annual rate for a policy with $300,000 in dwelling coverage is $1,662, which is 23% lower than the national average. Nationwide stands out for its comprehensive coverage options and reliable customer service.

Travelers

Travelers is a reputable insurance company that offers homeowners insurance at competitive rates. Their average annual rate for a policy with $300,000 in dwelling coverage is $2,312, which is slightly higher than the national average. Travelers is recognised for its financial stability and diverse coverage options.

Average home insurance costs by deductible

The average cost of home insurance is influenced by a variety of factors, including the deductible amount. A deductible is the amount you're required to pay out of pocket on each claim before your insurance provider covers the remainder. Opting for a higher deductible generally leads to lower insurance rates, but it also means you'll have to contribute more towards each claim.

Here's a look at the average home insurance costs for a $350,000 home insurance policy by deductible:

• $250 deductible: The average annual home insurance cost for a $250 deductible is $1,769.
• $500 deductible: Increasing the deductible to $500 leads to an average annual cost of $1,710, a savings of $59 compared to the $250 deductible.
• $1,000 deductible: A $1,000 deductible further reduces the average annual cost to $1,595, resulting in a savings of $115 compared to the $500 deductible.
• $1,500 deductible: Raising the deductible to $1,500 can lead to additional savings, with the average annual cost expected to be lower than $1,595.
• $2,000 deductible: Choosing a $2,000 deductible is likely to result in an average annual cost of less than $1,500, offering significant savings compared to lower deductible options.

It's important to note that while a higher deductible can lower your insurance rates, it also means you'll need to pay more out of pocket if you need to file a claim. It's crucial to choose a deductible that strikes a balance between affordability and adequate coverage for your specific situation.

Average home insurance costs by dwelling coverage

Dwelling coverage is a major factor in determining home insurance rates. The dwelling coverage is the replacement cost amount of the house. The higher the dwelling coverage, the higher the home insurance rate.

| Dwelling Coverage Amount | Average Monthly Rate |

|---|---|

| $200,000 | $167 |

| $300,000 | $217 |

| $400,000 | $269 |

| $500,000 | $359 |

| $600,000 | $468 |

The table shows that as the dwelling coverage amount increases, the average monthly home insurance rate also increases. For example, the average monthly rate for $200,000 of dwelling coverage is $167, while the average monthly rate for $600,000 of dwelling coverage is $468.

It is important to note that the rates in the table are averages and may not reflect the exact rates offered by insurance companies. The rates can vary depending on various factors such as location, age of the home, and credit score.

Home insurance rates have been increasing nationwide due to factors such as inflation and extreme weather events. Shopping around and comparing quotes from multiple insurance companies is a recommended way to find the best rates and save money on home insurance.

Average home insurance costs by claims history

The average cost of home insurance in the US is $1,915 a year, or about $160 a month, according to NerdWallet's analysis. However, this is just a benchmark. The cost of your homeowners insurance will depend on your location, the size of your house, and how much coverage you need.

Here's how filing a claim could affect your homeowners insurance costs:

• National average rate: $1,915 per year
• With one previous claim: $2,083 per year
• With two previous claims: $2,251 per year
• With three previous claims: $2,420 per year

The cost of home insurance also depends on the state you live in. For example, Hawaii, Delaware, and Vermont are the cheapest states for homeowners insurance, with average annual rates of $515, $860, and $870, respectively. On the other hand, Oklahoma, Texas, and Nebraska are the most expensive states, with average annual rates of $5,495, $4,400, and $4,135, respectively.

Frequently asked questions