States With Lowest Home Insurance Costs
The average cost of home insurance in the United States comes in at $1,947.
All the amounts in this article are calculated using a $300,000 coverage figure.
- You can enjoy the United States’ lowest home insurance cost in Hawaii, with an annual rate of just $482.
- Oregon's annual home insurance cost is reasonable, coming in at $882.
- In Delaware, you can expect to pay around $922 annually for your home insurance.
- In New Jersey, the average annual home insurance cost is $933.
- Utah residents can expect a moderate annual home insurance cost of around $934.
- New Hampshire residents pay an annual home insurance cost of around $978.
- Vermont offers a low annual home insurance cost of about $1057.
- Maine offers one of the country's lowest annual home insurance costs, at only $1092.
- The District of Columbia has an annual home insurance cost of $1174.
- Wisconsin offers a low annual home insurance cost of $1182.
- Homeowners in Alaska pay around $1247 annually for home insurance.
- Washington residents can expect to pay around $1249 annually for home insurance.
- In Idaho, homeowners pay around $1291 annually for their home insurance.
- The annual rate for home insurance in Nevada is $1304.
- The annual home insurance cost in Pennsylvania is about $1326.
- Massachusetts homeowners have an annual home insurance cost of $1,353.
- New York residents can expect an above-average annual home insurance cost of $1427.
- West Virginia homeowners pay $1,436 annually for home insurance.
- Virginia homeowners pay an average annual home insurance cost of $1478.
- Rhode Island residents can expect to pay an average annual home insurance cost of $1488.
- Ohio offers an affordable annual home insurance cost of around $1504.
- California offers a fairly low annual home insurance cost of around $1556.
- Connecticut homeowners pay an average of $1620 annually for home insurance.
- Maryland residents pay an average of $1623 annually for home insurance.
- In Wyoming, the annual home insurance cost is about $1664.
- North Carolina homeowners enjoy a reasonable annual home insurance cost of $1680.
- In Iowa, the annual home insurance cost is a reasonable $1767.
- South Carolina homeowners pay around $1781 annually for home insurance.
- New Mexico homeowners pay around $1799 annually for home insurance.
- Michigan residents pay an estimated $1837 annually for home insurance.
- In Arizona, the annual home insurance cost is about $1848.
- North Dakota residents can expect to pay roughly $1864 annually for home insurance.
- Georgia residents can expect to pay an average of $1924 annually for their home insurance.
- Alabama's annual home insurance cost is $1946.
- Indiana residents pay $1961 annually for home insurance.
- Illinois offers an annual home insurance cost of about $1971.
- Minnesota homeowners can budget for an annual home insurance cost of $2014.
- Montana homeowners pay around $2366 annually for their home insurance.
- Kentucky residents pay an average of $2430 annually for their home insurance.
- Tennessee’s annual home insurance cost is $2430.
- South Dakota residents can expect to pay roughly $2464 annually for home insurance.
- Mississippi has an annual home insurance cost of $2721.
- The annual home insurance cost in Colorado is $2724.
- Missouri residents enjoy a reasonable annual home insurance cost of $2783.
- Louisiana's home insurance costs are among the highest, with an annual rate of $2885.
- In Florida, the annual home insurance cost is $2941.
- Kansas homeowners can expect to pay around $2986 annually for home insurance.
- Texas homeowners face an above-average annual home insurance cost of $3020.
- Arkansas residents can expect to pay $3239 annually for home insurance.
- Nebraska residents would have to bear a heavy home insurance cost, averaging $4,350 annually.
- Oklahoma has the highest annual home insurance costs in the country, at a whopping $4,389.
2022 Home Insurance Cost
||Annual Home Insurance Cost - 2022
|District of Columbia
|United States (average)
Understanding the landscape of home insurance costs across the United States provides vital insight into the financial aspects of home ownership. The data for 2022 reveals stark differences in annual insurance costs depending on where your home is located.
Starting at the lower end of the scale, Hawaii demonstrates the lowest home insurance costs at a modest $482 annually. The island state's isolation from the mainland, along with stringent building codes and rigorous disaster preparedness, may account for this low cost. The relatively lower frequency of claims due to calamities could also play a role. Additionally, states such as Oregon, Delaware, and New Jersey showcase lower-than-average home insurance costs at $882, $922, and $933, respectively. This could be attributed to lower susceptibility to natural disasters, efficient state regulations, and a competitive insurance market.
On the opposite end of the spectrum, Oklahoma tops the chart with an astounding annual home insurance cost of $4,389. The high insurance cost in Oklahoma might be attributed to the state's high exposure to natural disasters, particularly tornadoes, and earthquakes. Other states like Nebraska ($4,350), Arkansas ($3,239), Texas ($3,020), and Kansas ($2,986) also share in the higher cost burden. These states frequently experience severe weather phenomena such as hail, windstorms, and flooding, which drive up claims and insurance costs.
Geography and natural disaster risk are significant factors affecting home insurance costs. States vulnerable to severe weather events naturally experience higher insurance costs due to the increased likelihood of damage and subsequent claims. Region-specific disasters such as earthquakes, hurricanes, and wildfires also play heavily into a state's average insurance costs.
“Tornado Alley” refers to a loosely defined region in the central United States and Canada where tornadoes occur most frequently. The term was first used in 1952 and has since been associated with areas of the U.S. that have a high potential for tornado development.
This region includes portions of Texas, Oklahoma, Kansas, Nebraska, South Dakota, Indiana, Missouri, Iowa, Illinois, and Ohio. These states have historically experienced the most tornadoes. In particular, Texas experiences the highest average number of tornadoes per year, followed closely by Mississippi. Kansas and Alabama also record a significant number of tornadoes annually.
Most tornadoes are found in the Great Plains of the central United States – an ideal environment for the formation of severe thunderstorms. This area is typically associated with late spring tornado occurrences. However, there's also a region often referred to as Dixie Alley, which includes Arkansas, Louisiana, Tennessee, Alabama, and Georgia, where tornadoes are also frequent.
The United States experiences approximately 1,200 tornadoes every year, leading to extensive property damage and loss of life. It's worth noting that the boundaries and locations of Tornado Alley are not fixed and can change based on weather patterns and climate change.
Tornadoes are formed by a combination of specific climatic and weather conditions:
- Atmospheric Instability: This occurs when there's warm, moist air near the earth's surface with cooler, drier air above it. The warm air rises, leading to the formation of thunderstorms, which are the precursors to tornadoes.
- Wind Shear: Wind shear is a difference in wind speed or direction over a short distance in the atmosphere. It's crucial for tornado formation because it sets up a rotation that can be intensified by thunderstorms.
- Moisture: Moisture is needed in the lower to mid levels of the atmosphere for the development of the thunderstorms that can lead to tornadoes.
Most tornadoes are found in the Great Plains of the central United States, an area known as Tornado Alley. Here, dry cold air moving south from Canada meets warm moist air traveling north from the Gulf of Mexico, creating ideal conditions for severe thunderstorms and, potentially, tornadoes.
It's important to note that while these conditions are often present during tornado formation, their presence does not guarantee a tornado will occur. Tornado formation is a complex process that scientists are still studying to fully understand.
While geography and disaster risk are significant, they aren't the only factors taken into account when determining home insurance costs. Other elements like local construction and rebuilding costs, crime rates, the age and condition of the home, and even credit history can influence the cost of insuring homes. The overall average home insurance cost across the United States, accounting for these varying elements, is $1,947.
Understanding this information is vital as it allows homeowners to budget appropriately and be aware of the factors contributing to their insurance costs. By knowing what influences these costs, they can also take steps to potentially mitigate some risks and ensure their homes are adequately protected.
Founded by author Bert Sperling over 30 years ago, BestPlaces helps Americans find their own best place to live. The site allows millions of monthly users to compare and track the cost of living between different locations by providing data on groceries, housing costs, transportation, and other expenses.