What is the average cost of home insurance?


Home insurance is inexpensive, compared to other types of insurance. The average home insurance annual premium is around $700-$750.

The cost of home insurance can range depending on a number of factors, such as state, the worth of the home insured, the risks the home is exposed to, etc.

Factors Determining the Cost of Home Insurance

  • Location.

    The state where you live matters a lot to home insurance underwriters who are responsible for determining your premiums. Using actuarial data for the area where you live, they assess the risk of loss you are exposed to. States such as California and Florida are typically in the higher end of the home insurance cost spectrum, with premiums being close to $1000, whereas in states such as North Dakota, South Dakota, Montana it is normal for home owners to pay between $300 and $400 a year in home insurance.

  • Cost of home.

    Logically, the more expensive the home, the higher the premium.

  • The cost of personal property.
  • The likelihood of natural disasters.

    Areas naturally prone to calamities, such as Florida, California, Texas, have some of the highest home insurance premiums because of the perils the homes in these states are exposed to. Some home insurance providers even exclude natural disasters from their policies in high-risk zones.

How to Save on Home Insurance

  • Shop around and compare quotes provided by multiple companies.
  • Do not only compare prices, compare coverage amounts, deductibles, and most importantly, the home policies' exclusions and endorsements.
  • Make sure the companies you are considering have a good history and an excellent credit rating.
  • Ask each insurance company what kinds of discounts are available: this can save you a lot of bucks.
  • It is always advisable that you raise your deductibles.
  • Once you have purchased a home insurance policy, try not to file small claims and review your policy on a regular basis if you have made any improvements to your home.
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