Understanding Home Insurance Costs: Average Premiums by State

Home Insurance

Average Home Insurance Cost

Homeowners insurance provides essential protection for your home, personal property, and liability. But the cost of home insurance varies widely depending on a variety of factors, including your location. In this article, we’ll explore the average home insurance premiums by state, factors that impact your premium, and how to find the best coverage for your needs.

Average Home Insurance Premiums by State

Home insurance premiums vary widely by state, with some states being significantly more expensive than others. The average annual premium for homeowners insurance in the United States is around $1,200. However, in some states, homeowners can expect to pay significantly more. Here’s a breakdown of the average home insurance premiums by state:

State Average Annual Premium
Alabama $1,545
Alaska $1,000
Arizona $863
Arkansas $1,445
California $1,008
Colorado $1,544
Connecticut $1,247
Delaware $745
Florida $1,951
Georgia $1,267
Hawaii $706
Idaho $713
Illinois $1,035
Indiana $1,036
Iowa $880
Kansas $1,630
Kentucky $1,062
Louisiana $1,968
Maine $772
Maryland $981
Massachusetts $1,118
Michigan $908
Minnesota $1,423
Mississippi $1,508
Missouri $1,554
Montana $947
Nebraska $1,200
Nevada $741
New Hampshire $835
New Jersey $1,191
New Mexico $965
New York $1,321
North Carolina $1,106
North Dakota $1,210
Ohio $863
Oklahoma $1,875
Oregon $677
Pennsylvania $837
Rhode Island $1,032
South Carolina $1,284
South Dakota $1,162
Tennessee $1,222
Texas $1,937
Utah $696
Vermont $706
Virginia $940
Washington $853
West Virginia $1,028
Wisconsin $740
Wyoming $1,140


Factors That Affect Your Home Insurance Premium

The cost of your home insurance premium depends on a variety of factors, some of which are within your control and others that are not. Here are the key factors that can impact your home insurance premium:

  1. Location – As we’ve seen from the above table, where you live is a significant factor in determining your home insurance premium. States with higher risks of natural disasters, such as hurricanes, earthquakes, and wildfires, tend to have higher premiums.
  2. Home value – The more expensive your home, the more you’ll pay for home insurance. This is because a higher-value home will cost more to repair or replace in the event of damage or destruction.
  3. Deductible – Your deductible is the amount you’ll pay out of pocket before your insurance coverage kicks in. Generally, the higher your deductible, the lower your premium.
  4. Age and condition of the home – Older homes or homes in disrepair are more likely to experience damage or require repairs, which can increase your premium.
  5. Credit score – Many insurance companies use credit scores as a factor in determining your premium. If you have a lower credit score, you may end up paying a higher premium.
  1. Claims history – Your claims history is another important factor that insurance companies consider when calculating your premium. If you’ve filed multiple claims in the past, you may be seen as a higher risk and charged a higher premium.
  2. Coverage options – The type and amount of coverage you choose will also impact your premium. The more comprehensive your coverage, the higher your premium will be.
  3. Insurance company – Different insurance companies have different pricing models and underwriting standards, which can result in different premiums for the same coverage.


How to Find the Best Home Insurance Coverage for Your Needs

When shopping for home insurance, it’s important to understand your coverage options and compare quotes from multiple providers to find the best value for your needs. Here are some tips for finding the right coverage:

  1. Understand your coverage needs – Before you start shopping for home insurance, take some time to evaluate your coverage needs. Consider the value of your home and personal property, as well as any unique risks in your area, such as floods, earthquakes, or wildfires.
  2. Shop around for quotes – Don’t settle for the first quote you receive. Shop around and get quotes from multiple providers to compare pricing and coverage options.
  3. Consider bundling your policies – Many insurance companies offer discounts if you bundle your home and auto insurance policies with them.
  4. Review and compare coverage options – Make sure you understand what’s included in each policy and compare coverage options carefully. Look for policies that offer comprehensive coverage for your needs.
  5. Check the insurance company’s financial stability – Make sure the insurance company you choose has a strong financial rating and is capable of paying out claims in the event of a disaster.
  6. Ask for discounts – Many insurance companies offer discounts for things like home security systems, fire alarms, and new home purchases. Ask your provider about available discounts.



Understanding the average home insurance premiums by state is an important step in finding the right coverage for your needs. By considering the key factors that impact your premium and shopping around for quotes, you can find the best value for your coverage needs. Remember to carefully review your coverage options and choose an insurance provider with a strong financial rating to ensure that you’re protected in the event of a disaster.