Average Cost of Homeowner’s Insurance

August 26, 2010 No Comments »


If you’re wondering how much homeowner’s insurance costs, you’ve come to the right place.

The average cost of homeowner’s insurance has been rising steadily over the past decade, according to data from the Insurance Institute.

In fact, the average homeowner’s insurance premium, which was just $508 in the year 2000, is estimated to climb to $879 this year.

That’s nearly a 75% jump in the cost of homeowner’s insurance, not welcome news for already struggling homeowners.

Average Homeowner’s Insurance Cost

average cost of homeowners insurance

Part of the rise in homeowner’s insurance costs can be attributed to the many damages (and subsequent insurance claims) related to catastrophes like Hurricane Katrina and other major storms.

The unhealthy rise in home prices over the past several years also contributed to the rise in homeowner’s insurance costs, as larger and more expensive homes obviously cost more to insure.

Add to that the large number of vacant homes on the market, which reduces the volume of homeowner’s insurance written and raises costs for the fewer policies sold, and you can see why prices have been rising.

(How are homeowners insurance rates determined?)

However, the cost of homeowner’s insurance varies greatly throughout the country, and from company to company (and also by types of homeowner’s insurance).

It can also change fairly frequently, based on a number of market forces, and may even be cheaper now than what you paid for it a year or two ago (home sizes are getting smaller!).

That’s why it’s always wise to shop your homeowners insurance rate with an independent agent to ensure you’re always getting the best deal.

Florida Most Expensive State for Homeowner’s Insurance

In 2007 (the most recent data available), the average cost of homeowner’s insurance (for a 12 month-period) was highest in Florida at $1,534, followed by Texas at $1,448 and Louisiana at $1,400.

The cheapest states to get homeowner’s insurance were Idaho at $422, Wisconsin at $491, and Oregon at $496.

That compares to the national average cost of homeowner’s insurance of $822 in 2007.

cost by statecost by state 2

Read more: Top 10 homeowners insurance companies.

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