The average cost of homeowners insurance is $1,249 per year, or $104.08 per month, according to the 2021 National Association of Insurance Commissioners (NAIC) report. Show
Factors such as location, home value, coverage levels and discounts will determine your quoted homeowners insurance price. In this review, we at the Guides Home Team discuss these factors and help you find the best home insurance policy for your home. For the home insurance pricing in this article, we used the home insurance report from the NAIC that was published in January 2021. Compare Homeowners Insurance Policies Answer a few simple questions and we'll take care of the rest. Compare Quotes 855-948-5219 855-948-5219
Average Home Insurance Cost by Coverage AmountThe national average annual cost of home insurance in 2018 (the latest data available from the 2021 NAIC report) was $1,249, but sorting the premiums by the dwelling coverage amount you select can provide a more accurate prediction of what you might pay. Dwelling coverage reimburses you for any covered damage to the structure of your home, and a premium is the amount of money you pay to keep your policy active. In the table below, we’ve listed several dwelling coverage ranges and each range’s average monthly premium: Amount of Dwelling Coverage Average Monthly Premium $49,999 and under $645 $50,000–$74,999 $748 $75,000–$99,999 $826 $100,000–$124,999 $937 $150,000–$174,999 $981 $175,000–$199,999 $1,018 $200,000–$299,999 $1,114 $300,000–$399,999 $1,272 $400,000–$499,999 $1,482 $500,000 and over $2,148
Average Home Insurance Cost by LocationInsurance premiums also vary based on your location. For example, states at a higher risk for severe weather, hurricanes and tornadoes will generally have higher premiums due to the increased risk of property damage. Here’s the NAIC data for the average premiums in each state. Texas, Florida, Oklahoma and Louisiana have some of the highest insurance premiums in the nation, while states like Oregon, Utah and Nevada carry lower premiums since hurricanes, flooding and tornadoes don’t pose a threat in those areas. Most Expensive States for Home Insurance
Least Expensive States for Home Insurance
Additionally, your location within a state is one of the biggest factors that can affect your home insurance price. In densely populated urban areas, real-estate prices and construction costs tend to be higher, and the coverage you need is directly tied to the value of your home. If you live in an area with high real-estate prices, you’ll end up paying more for home insurance because it will cost more money to rebuild your home.
What’s Included in a Home Insurance Rate?Home insurance coverage is divided into six categories. Here’s an overview of each type of coverage:
What are the Different Types of Home Insurance Coverage Levels?Homeowners insurance policies have three different levels of coverage: actual cash value, replacement cost and guaranteed replacement cost. You will almost always have the option to pay extra on your monthly premium for a higher level of protection. Actual cash valueThis is the lowest level of protection and the most affordable. With an actual cash value policy, your insurer will pay you for what your belongings and/or home is worth, minus depreciation. Replacing what you’ve lost will often cost more than the amount for which you’re reimbursed. Replacement costThis medium level of protection will carry a higher premium than a policy that pays actual cash value because the depreciation isn’t factored in. This will pay for the cost to rebuild your home or replace your possessions without depreciation. Guaranteed replacement costThis is the highest level of protection and is generally more expensive than the other two policies. In the event of a covered disaster, such as a hurricane or tornado, construction costs will often be more expensive than usual. This level of protection will rebuild and replace your possessions even if the cost exceeds your policy limits. Many home insurance companies also offer extended limits in exchange for a higher premium, which allows homeowners to receive more coverage.
What Factors Can Affect the Cost of Home Insurance?Homeowners will receive a quoted rate for home insurance based on a variety of factors. Here are some factors that can drive your home insurance price higher or lower:
How to Save Money on a Home Insurance PolicyFrom discounts to choosing a higher deductible, here are a few ways you can save money on your home insurance policy.
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How Can You Get Home Insurance Discounts?Most providers offer several discounts, such as bundling insurance policies and signing up for autopay. Here are a few common discounts offered by home insurance companies:
Frequently Asked Questions about Home InsuranceDoes home insurance cover appliance breakdowns?No, home insurance will only pay for repairs and replacements if the damage was caused by a covered peril. Routine breakdowns due to normal wear and tear are not covered by home insurance, but they are often covered by a home warranty. Which homeowners insurance company is best?There are several reputable national providers that we recommend, but in our review of the best home insurance companies, Allstate scored the highest and was our overall pick for homeowners insurance. To get a free quote from Allstate, fill out this simple online form. Is home insurance mandatory?Home insurance isn’t required by law, but lenders can require you to have a home insurance policy if you have a mortgage. Even if you aren’t required to hold a policy in your state, we recommend getting home insurance to provide peace of mind and protect your home and its belongings.
Methodology: Our system for ranking the best home insurance companiesOur team surveyed dozens of home insurance providers and created a scoring system to judge each company’s quality and service. We reach out for sample quotes, both over the phone and on the internet, to simulate an authentic customer experience. Here are the factors that account for our provider reviews:
Companies with the best customer service exhibit 24/7 availability, educational resources on their website, useful digital tools and a seamless claims-filing process. Providers that offer extensive discount options, endorsements, customizable coverage options and unique features score significantly higher than those that don’t, putting them toward the top of our recommendations to readers. What is the average annual cost for home insurance per house in the US?How much does homeowners insurance cost? The national average cost of home insurance is $1,383 per year for $250,000 in dwelling coverage, based on proprietary rate data provided by Quadrant Information Services.
How much is home insurance in Texas for 400k house?The average cost of home insurance in Texas is $4,142 annually for dwelling coverage of $300,000 and liability coverage of $100,000.
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How much is home insurance in Texas per month?. How much is home insurance in NJ per month?The average cost of homeowners insurance in New Jersey is $1,359 per year, or $113 per month. That's 10% cheaper than the national average of $1,516 per year.
What is the average home insurance cost in Florida?Florida homeowners insurance: what you need to know. The average cost for home insurance in Florida is $1,405 per year or $118 per month. Premium costs aren't bad relative to the rest of the US — although Floridians do pay 5% more per year on average.
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