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Cost of home and renters insurance
Oregonians get the best rates — and Louisiana and Florida homeowners pay the most.
How much you pay for insurance depends on where you live, what kind of house you live in, your age and a lot more. But knowing what other people are paying can help you figure out if you’re getting a good deal.
How much does homeowners insurance cost?
In 2017, the average homeowners insurance policy cost $1,211, according to the Insurance Information Institute (III) Average premiums range from $677 a year in Oregon to $1,968 in Louisiana. The III details its findings in its home and renters insurance report, released in November 2019.
Home insurance cost
Compare average annual rates of homeowners insurance by state.
Renters insurance cost
Compare average annual rates of renters insurance by state.
Which states have the most expensive home insurance?
If you live in Lousiana or Florida, you’ll face the highest home insurance premiums across the nation, according to the most recent III report based on 2017 data. These states’ water-logged factors like rain, hurricanes and low elevation could be the cause of high rates.
Other states with the highest home insurance premiums:
|State||Average premium in 2017|
Which states have the cheapest home insurance?
Homeowners who live in the West or Midwest have the good fortune of a lower insurance premium. These low premiums may reflect the states’ safety against most types of damage. The top five cheapest states include:
|State||Average premium in 2017|
Average costs by home value
Looking at the nationwide average premium within your home’s same value can give you a solid idea of what premium might pay. Premiums for home values insured under the most common policy type, the H0-3 policy, according to the Insurance Information Institute:
|Insured home value||Average premium in 2017|
|$49,999 and under||$633|
|$50,000 to $74,999||$745|
|$75,000 to $99,999||$814|
|$100,000 to $124,999||$870|
|$125,000 to $149,999||$918|
|$150,000 to $174,999||$960|
|$175,000 to $199,999||$997|
|$200,000 to $299,999||$1,092|
|$300,000 to $399,999||$1,252|
|$400,000 to $499,999||$1,467|
|$500,000 and over||$2,149|
Compare homeowners insurance policies
How can I save on home insurance?
Here are simple things you can do to reduce the cost of home insurance:
- Don’t be afraid to switch. If you find that you’re paying too much to insure your home, don’t be afraid to jump ship for a better deal. While shopping, avoid settling for the first home insurance quote you get. Instead, get quotes from multiple insurers and compare them based on cost, coverage and reputation.
- Avoid making claims. If you can afford to pay for a repair out of pocket, it can help you save on your premiums.
- Choose a higher deductible. Increasing your deductible amount will result in lower premiums.
- Secure your home. Introducing measures to deter burglars, like installing a security system, can help you save on your insurance.
- Take advantage of discounts. Buying online, not smoking and being over 55 can all get you discounts on homeowners insurance. And if you hold multiple policies with the same insurer, you may be entitled to a multi-policy discount.
- Don’t assume you’re covered. When choosing a policy, never assume that you’ll be covered for everything. From flood damage to termites, there are plenty of exclusions that may apply to coverage, especially on cheaper policies. Read the policy closely for details of what’s covered and talk with your insurer to find out if you might need additional coverage for natural disasters.
- Avoid underinsuring your home. If it’s been more than a few years since your home was last appraised, consider getting a professional appraisal before taking out a new policy. It’s also a good idea to inventory all of your belongings, including your furniture and electronics, to make sure your insurance covers the cost of replacing them.
What affects homeowners insurance costs?
There are multiple factors that impact the cost of home insurance in the US, including:
- The value of your home. The more your home would cost to repair or replace, the more it’ll cost to insure.
- The type of policy you get. HO-1 and HO-2 policies, which cover only specific named events, will cost less than HO-3 policies, which offer more protection.
- Where you live. The location of your home affects your premiums. For example, if you live in a high-crime area or somewhere that commonly suffers severe storms, your premiums will be higher.
- Your home’s safety. If you have a top-of-the-line security alarm installed on your property, your insurer may agree to lower your premiums. The materials used in the construction of your home can also have an effect, such as cheaper premiums if you have an impact-resistant roof.
- Your claims history. If you’ve previously made homeowners insurance claims, you can expect to pay more for cover than a homeowner with a clear claims history.
- How often you pay your premiums. Some insurers will charge a lower rate if you pay yearly instead of monthly.
- Your deductible. By agreeing to pay a higher deductible if you need to make a claim, you can get lower premiums.
- Any discounts that may apply. You can reduce the cost of coverage by taking advantage of homeowners insurance discounts you may be eligible for based on your home, location or personal risk factor.
How to compare home insurance policies
Here’s what to look for when reviewing home insurance policies:
- Covered events. Take a look at the list of all events and circumstances a policy covers. Is there something missing that you could really benefit from?
- Exclusions. Check out the list of general exclusions to find out when your claim won’t be covered. For example, most policies won’t cover pet damage.
- Coverage type. Replacement cost policies pay to repair or replace your belongings after a covered event, while actual cash value policies pay what your stuff is worth — factoring in depreciation. Replacement cost offers more comprehensive coverage, but costs more.
- Coverage limits. Check for the limits on both your belongings and your home.
- Cost. Factor in both the cost of the premiums and the cost of the deductibles.
- Optional extras. Some policies may let you add extra coverage to further protect your home.
How much homeowners insurance do I need?
You need enough insurance to cover the cost to rebuild your home, replace your belongings and find temporary accommodations after a covered event. If you recently bought your home, you should have a good idea of its current value. If you’ve had your home for a while, consider getting it appraised. You’ll also want to include coverage for any potential liabilities.
Go through your home room by room and write down what you own and how much it would cost to replace it. This way, you can estimate how much coverage you need for your possessions. Expensive items like jewelry may need additional coverage. Most policies will come with at least $100,000 worth of liability coverage, but experts like the III recommend upgrading to $300,000 to $500,000 for additional protection.
The average homeowners insurance policy costs about $1,192, but that number will vary wildly based on where you live and how much your home is worth. To get the best deal, compare homeowners insurance quotes from multiple providers.
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