Where are the cheapest home insurance rates?


The cheapest home insurance rates can be found in areas where home prices are comparatively low, and natural disasters are rare. When determining the home insurance rates, underwriters perform risk assessment, considering a number of factors, such as location, cost of property and personal belongings, and the likelihood of natural disasters in the respective area.

If you live in a low-risk zone, you can consider yourself very lucky since your home insurance premiums will probably be below the national average, which - according to the latest report of the National Association of Insurance Commissioners (NAIC) - is $804 per year. Anything below this figure is considered a cheap home insurance rate (see Table 1 for a list of all the states that are at the lower end of the home insurance rate spectrum).

If, however, you live in an area prone to floods, hail, storm, earthquakes and other natural perils, you can pay over a thousand dollars in home insurance premiums, such as in Florida, Texas, Louisiana, Oklahoma, District of Columbia and Mississippi. Because natural disasters in these states are common, some insurance companies even pull out, making it impossible for home owners to obtain protection for their homes privately.

The good news is that almost all high-risk states have federal-run agencies committed to providing the necessary protection to home owners in the event of a devastating natural disaster.

State Homeowners 3 Average Premium Rate
Arizona $640
Delaware $530
Georgia $703
Hawaii $776
Idaho $477
Illinois $674
Indiana $638
Iowa $596
Kentucky $637
Maine $573
Maryland $721
Michigan $715
Minnesota $788
Missouri $707
Montana $666
Nebraska $783
Nevada $693
New Hampshire $669
New Jersey $726
New Mexico $638
North Carolina $649
North Dakota $742
Ohio $530
Oregon $502
Pennsylvania $643
South Dakota $628
Tennessee $706
Utah $494
Vermont $677
Virginia $662
Washington $603
West Virginia $650
Wisconsin $490
Wyoming $648

Table 1. Home insurance rates below the national average by state.

Was this question and its answer useful?
Not a bit
  • Currently 5/5 Stars
  • 1
  • 2
  • 3
  • 4
  • 5
Very useful
Have a question about insurance? Ask the experts