How much does home insurance cost per year? Here are the US averages
Your homeowners insurance costs can depend on several factors. (iStock)
The average cost of homeowners insurance depends on a few different things, but the average for all homeowners in the U.S. is $1,249 per year, according to data analyzed by the Insurance Information Institute (III).
Homeowners insurance costs can also vary widely by state, with Oregonians paying an average of $706, while residents of Louisiana paying $1,987. If you're shopping around for a homeowners insurance policy, read on for you need to know. Then, head to Credible for free home insurance quotes and compare insurance policies.
What's the average cost of homeowners insurance?
Nationwide, the average annual premium is $1,211, which comes out to roughly $101 per month. There are several factors that will go into determining your home insurance rates, however.
Examples can include:
- Location
- Amount of coverage
- Neighborhood crime rates
- Fire safety features
- Condition, materials and age of the home
- Deductible amount
- The homeowner's credit score and claims history
If you're in the market for homeowners insurance because you're buying a house, or you simply want to make sure you're getting the best rate, it's a good idea to shop around and compare rates from multiple insurers before you settle on a policy.
Credible can help you make comparison shopping easier. Plus, they can tell you how to save hundreds on homeowners insurance each year.
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Which states have the cheapest homeowners insurance cost?
According to the III, the top 10 states with the cheapest annual premiums for homeowners insurance include:
- Oregon - $706
- Utah - $730
- Idaho - $772
- Nevada - $776
- Wisconsin - $814
- Arizona - $843
- Delaware - $873
- Ohio - $874
- Washington - $881
- Maine - $905
If you want to explore how you can lower your annual premium, visit Credible to compare home insurance companies and costs.
5 FACTORS THAT AFFECT HOME INSURANCE RATES
Which states have the most expensive homeowners insurance cost?
The 10 states with the most expensive annual premiums for homeowners insurance include the following:
- Louisiana - $1,987
- Florida - $1,960
- Texas - $1,955
- Oklahoma - $1,944
- Rhode Island - $1,630
- Kansas - $1,617
- Colorado - $1,616
- Mississippi - $1,578
- Nebraska - $1,569
- Massachusetts - $1,543
If you think you're paying too much for home insurance, visit Credible to compare insurance policies and get free quotes.
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How to save money on homeowners insurance
While there are some factors that go into your homeowners insurance premiums that are outside your control, there are some things you can do to reduce how much you pay:
- Shop around and get quotes from at least three insurance companies
- Raise your deductible
- Bundle your home and auto policies with the same insurance company to get a discount
- Ask about discounts for security and safety features, such as burglar alarms, smoke detectors, deadbolt locks and more
- Inquire about other discounts that you may be eligible for
- Avoid filing claims for damages that are cheap to fix
- Improve your credit score
As you take these and other steps, you'll have a much better chance of finding the right coverage for your home at the best price available to you. Wondering how much you could save? Head over to Credible, who has partners to give you a free insurance quote within minutes.
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What does homeowners insurance cover?
Homeowners insurance is designed to help cover the cost of repairing or even rebuilding your home and personal property if they're damaged due to certain events. Covered perils typically include:
- Fire and smoke
- Lightning
- Windstorms and hail
- Explosions
- Vandalism
- Damage from an aircraft, car or other vehicle
- Theft
- Falling objects
- Weight of ice, snow or sleet
- Water damage (excludes floods, which require additional insurance)
You'll want to get enough coverage on your policy to cover the full cost of rebuilding your home if it gets destroyed due to a covered peril.
You'll also want to make sure you have robust liability coverage in case someone gets hurt on your property. In fact, your homeowners insurance company may not offer enough coverage, and you may need to get an umbrella policy on top of it — the III recommends up to $500,000 in liability insurance.
Other coverages you'll want to consider include your personal property, additional living expenses and more.
If you're ready to take the next step, you can use Credible to compare homeowners insurance companies and shop their plans.
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The bottom line
Homeowners insurance is always a good idea, but it can get expensive, especially if you live in certain states. Understanding what your policy covers and which factors influence the cost can give the information you need to save money. Visit Credible to get started and explore home insurance options.
DON'T FORGET ABOUT HOMEOWNERS INSURANCE WHEN BUYING A NEW HOUSE