Find Cheaper Homeowners Insurance

How much should I be paying for home insurance?

How Much Should I Pay For Homeowners Insurance?

Homeowners insurance costs for each state differ from one another. According to the Insurance Information Institute (III), insurance rates in the United States vary from $659 to $1,967 per year in 2016 (latest available data). According to III, an American homeowner pays an average of $99 a month for insuring their home, which translates to $1,192 per year. Find your state average by reading our State Guides. Once you have your state’s average, you will know the approximate range that you should be paying. If the quotes you are getting from providers are falling above average, look into what might be increasing your rates. Do you live in an area prone to natural disasters? Do you own a pet? These are some of the considerations insurers make to determine the premium for your house. If you still can’t figure it out, talk with the insurance agent directly and inquire why the premiums are expensive. If you compare quotes from multiple companies, you’ll have a clear understanding of whose charging higher and who has the most affordable rates.

Most expensive states for home insurance

States that are prone to hail storm, tornadoes, earthquakes, and hurricanes tend to pay the highest insurance rates. Here are the most expensive states for home insurance based on their average annual rate:

Least expensive states for home insurance

States with low population rates and aren’t disaster-prone have cheaper average premiums. These stated are inland and northern, that is why they aren’t experiencing too many tropical storms. Here are the states with the lowest average annual rates:

Factors that affect home insurance rates

Each homeowners insurance company factor in different risks and damages when determining home insurance rates. Here’s what insurance companies look at when issuing home insurance policies:


If you have an old roof, your insurer will charge you more since it’s prone to damages and leaks that may lead to a big insurance payout. It’s better to have a new roof that seals your home from snow, rain, and heavy winds.


This is one of the biggest factors that insurance companies are considering when it comes to home insurance rates. The density of population, weather, proximity to fire stations, insurance claim history, and accident– and fire-prone areas are some of the things they’re taking into account when determining rates in each state.

Age of your home

Your rates will be higher if your home is old because it needs more repairs and replacements in the long run. It will be at risk of plumbing and fire hazards as well.

Credit rating

Before an insurer issues a homeowners insurance policy, they will check your credit history first. When closing on a new home, don’t make any big purchases or take out any major loans since it can negatively impact your credit score and will make your home insurance rates higher.

How to save or get discounts

You can get discounts or save money on your home insurance premium by doing the following:

  • Install a home security system.
  • Bundle your home insurance to your auto or life insurance policy and save up to 15%.
  • Compare rates on different insurance companies to get the best home insurance package.
  • Reduce the deductible on your home insurance policy.
  • Check the National Association of Insurance Companies to know which insurance companies operate in your state. You can also see customer reviews on their site.

Similarly, you can check our lengthy article on how to save money on home insurance with 25 tips. In the same article, we highlighted companies to suit different types of homeowners.

Final Thoughts

Home insurance rates mostly depend on the state you’re living. Locations prone to bad weather conditions and accidents tend to have expensive insurance premiums; however, it doesn’t mean that you have to move into areas that are less-populated and not disaster-prone. There are ways to get discounts on your premiums, that’s why planning ahead and comparing different insurance companies to get the best package can really help you.

Leave a Comment