Average Cost of Homeowner’s Insurance

August 26, 2010 No Comments »

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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 National Association of Insurance Commissioners (NAIC).

In fact, the average homeowner’s insurance premium, which was just $508 in the year 2000, increased to $1,192 at last glance (2016 data).

That’s nearly a 135% 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

As you can see from the chart above from the Insurance Information Institute, average homeowners insurance premiums have risen pretty consistently over the years.

And it didn’t stop in 2010 or beyond that – it just kept rising and will likely continue to increase.

The good news is the year-over-year increases seemed to slow down in recent years, though because of recent major weather-related events like wildfires, they’re probably going to jump yet again.

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 (opinion) 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.

Louisiana Most Expensive State for Homeowner’s Insurance

In 2016 (the most recent data available), the average cost of homeowner’s insurance (for a 12 month-period) was highest in Louisiana at a whopping $1,967, followed by Texas at $1,937 and Florida at $1,918.

That compares to the national average cost of homeowner’s insurance of $1,192 in 2016.

  1. Louisiana ($1,967)
  2. Texas ($1,937)
  3. Florida ($1,918)
  4. Oklahoma ($1,875)
  5. Kansas ($1,548)
  6. Mississippi ($1,525)
  7. Rhode Island ($1,496)
  8. Connecticut ($1,455)
  9. Massachusetts ($1,451)
  10. Colorado ($1,446)

Oregon Cheapest State for Homeowner’s Insurance

The cheapest states to get homeowner’s insurance were Oregon at $659, Utah at $664, and Idaho at $703.

  1. Oregon ($659)
  2. Utah ($664)
  3. Idaho ($703)
  4. Nevada ($742)
  5. Wisconsin ($762)
  6. Arizona ($803)
  7. Delaware ($816)
  8. Washington ($822)
  9. Ohio ($850)
  10. Maine ($866)

This should definitely be a consideration if you’re thinking about buying real estate as the cost of homeowner’s insurance can greatly alter your monthly housing payment.

In some extreme scenarios, the cost of homeowner’s might even rival the cost of the monthly mortgage payment itself.

Factor in the annual property taxes and you might struggle to make ends meet each month.

Read more: Top 10 homeowners insurance companies.

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