Finding the right cost for your house insurance can be tricky. It is because several factors influence the premium rate. Regardless, if you know the average price and the influences, you might be able to calculate the possible cost. We’ll assist you to find the average cost of house insurance.
Why Do You Need House Insurance?
To put it simply, house insurance protects your essential assets—your house and properties. Many possibilities might happen to your house in the future. For instance, fire accidents, natural disasters, and other risks. You want to take precautions in case the worst situation appears.
Another reason, if you have mortgage loans, the company might require you to have house insurance. The lenders want you to protect their investment while you pay down the loans. For that reason, having home insurance is essential.
The Average Cost of House Insurance by the States
After you decide to buy house insurance, you want to find insurance that fits your financial condition. Be aware that every state has a different average cost for its premium rate. Therefore, you might get different prices based on where you live.
From the sample based on 40-years-old single male homeowners with good credit and a $1,000 deductible, here is the estimated average national rate:
- $250,000 in dwelling coverage: $1,428 per year
- $300,000 in dwelling coverage: $1,820 per year
- $350,000 in dwelling coverage: $2,417 per year
1. The Cheapest States for House Insurance in the U.S.
Here is the list of average costs per year for the cheapest states for house insurance in the U.S.
| State | $250,000 dwelling coverage | $350,000 dwelling coverage |
| Hawaii | $543 | $761 |
| Delaware | $888 | $1,114 |
| Vermont | $941 | $1,192 |
| Utah | $990 | $1,221 |
| Oregon | $996 | $1,214 |
| New Hampshire | $1,034 | $1,330 |
Source: Marketwatch
Based on the table above, Hawaii is the cheapest place for house insurance. Its price can be up to 68% below the national average. The places like Hawaii, Vermont, or Delaware have low potential of danger, like tornadoes, or wildfires. It makes those places have low prices.
2. The Most Expensive States for House Insurance
The list below is the average cost per year of the most expensive states for house insurance in the U.S.
| State | $250,000 dwelling coverage | $350,000 dwelling coverage |
| Oklahoma | $4,614 | $5,839 |
| Texas | $3,679 | $4,851 |
| Nebraska | $3,873 | $4,849 |
| Kansas | $3,413 | $4,310 |
| Arkansas | $3,075 | $3,811 |
| Colorado | $2,966 | $3,672 |
Source: Marketwatch
The average cost of house insurance in Oklahoma is the most expensive in the U.S. The price can be up to $3,000 higher than the national average. Hurricane accidents are common in many places in the U.S., including Oklahoma, Kansas, and Texas. As a result, the average cost in those places is relatively high.
The Average Cost of House Insurance by Companies
Here is the average annual rate of the largest homeowner insurance companies in the U.S. We take samples of the cheapest insurance company for your consideration as well.
| State | $250,000 dwelling coverage | $350,000 dwelling coverage | $450,000 dwelling coverage |
| Erie | $957 | $1,269 | $1,601 |
| USAA | $969 | $1,208 | $1,440 |
| Auto-Owners | $1,049 | $1,308 | $1,584 |
| Nationwide | $1,153 | $1,519 | $1,884 |
| Travelers | $1,249 | $1,654 | $2,051 |
| Allstate | $1,304 | $1,772 | $2,205 |
Source: Bankrate
Based on the table above, USAA has the cheapest price compared to other competitors. Their average cost is 32% below the national average. However, this company has limited access only to U.S. military members. For this reason, this institution might not be eligible for everyone.
Erie is the cheapest insurance company next to USAA. For 250K dwelling coverage, the price is $957 per year or $80 per month. It saves your money up to 33% lower than the national average.
What Makes the Price of House Insurance Increase?
The average cost of house insurance can vary for each person. Various factors make the premium rate change. Here are the factors:
1. The Credit Score
The credit score can be essential to decide how much price you pay for your house insurance. The lower the credit score you have, the higher cost you will pay annually. Nevertheless, not every state allows credit-based insurance. California, Hawaii, Massachusetts, and Maryland are the states that don’t allow credit scores for rating.
This is the average prices based on credit score for $250K dwelling coverage:
- Poor credit: $3,274 per year
- Average credit: $1,571 per year
- Good credit: $1,428 per year
- Excellent credit: $1,207 per year
2. Claim History
Whenever there is damage in your insured house, you could file a claim. However, the premium rates will rise after you make a claim. Even if you change the company, the company will look at your recent claim history to decide the price.
The list below is the average cost of house insurance for $350K dwelling coverage after you claim with these types of claim:
- Wind and hail: $2,958
- Fire and lighting: $3,334
- Water damage and freezing: $3,221
3. House Age
The age of your house can be a factor determining your premium rates. The older house tends to be more expensive than the newer one. The example below is the average annual premium based on house age.
- Less than one year house: $1,545 per year
- 45 years old house: $2,717 per year
4. The Deductible
The deductible is the amount the policyholder must pay the insured loss before the insurer reimburses for the coverage. The deductible can influence the price of house insurance. This is an example of the average cost based on the deductible for $350 dwelling coverage.
- The deductible of $500: $2,900 per year
- The deductible of $1,000: $2,762 per year
- The deductible of $5,000: $2,193 per year
5. Potential Risks
The average cost of house insurance can vary depending on the potential risk that might happen. The price can increase if your house is close to danger. These are the potential dangers that the company considers to determining premium rate:
- Location—is your house in an area of risk for a property crime or natural disasters, like tornadoes, or flooding?
- Dangerous features—does your house have high-risk properties, like a trampoline or swimming pool?
- Age of house—If your house is old, the insurer will see it as a high risk of danger.
- Aggressive pets—some pets can be a consideration to increase the price, especially aggressive ones.
- High-value properties—properties with high value might be a factor for price increases.
Let’s Find the Average Cost of House Insurance!
Several factors like location, house age, or deductible can be essential in determining the premium rates of house insurance. You can compare the average cost above with your condition. Then, you can calculate the possible cost you might get. You already know the average cost of house insurance based on those factors. Now, let’s find yours!