States With the Highest Homeowners Insurance Rates
Did you know the NAIC found that the average premium for homeowners insurance across the United States was $1,086?
Spring and summer are the busiest seasons when it comes to buying a new home and moving. While most people are not going to decide where to move based on the cost of homeowners insurance, it doesn’t hurt to know if you are moving to a high cost state.
A study released in February 2016 by the National Association of Insurance Commissioners found that the average premium for homeowners insurance across the United States was $1,086 in 2013 (this is the most recent year that complete data was available), which was an increase of 6 percent from 2012.
Here are top 10 states with the highest homeowner premiums according to the study:
10. Alabama
Alabama grabs the number 10 spot with an average homeowners’ annual premium of $1,303. While Alabama is the only the 23rd most populous state, it has 53 miles of coastline which are prone to hurricanes. States that are hit by destructive weather on a regular basis will always pay more for insurance. If you plan on putting down roots in Alabama, expect your homeowner premium to be higher, regardless of whether you live on the coast or not.
9. Connecticut
Connecticut came in number 9 with a premium of $1,310, which was up from $1,160 in 2012. High property values, which push up the cost of repairs and rebuilding, combined with bad weather makes homeowners insurance expensive.
Connecticut tends to experience severe weather in the winter so frozen pipes, and roofs collapsing due to heavy snow pack can run up the cost of insurance. It’s not just winter that causes problems. Summer time brings tropical storms and hurricanes.
The Bay State ranked 8 with an average premium of $1,311 putting it barely ahead of Connecticut. Massachusetts suffers from high property prices, population density and severe weather. Despite the fact that Massachusetts is one of the smallest states in the country roughly, 7 million people call it home, making population density a big issue.
A dense population combined with major snowstorms during the winter and hurricanes during the summer push up rates for all Massachusetts residents.
7. Rhode Island
Rhode Island is number 7 with an annual premium of $1,338. Rhode Island is the smallest state in the country and the second most densely populated. In addition, a large section of the state is made up of islands. All of these factors combine to push up homeowners rates.
6. Kansas
The Sunflower State is a victim of frequent tornadoes, which jacks up the price of homeowners insurance to $1,353 making it number 6 in the country. Rates vary dramatically across the state with cities located in the middle of Tornado Alley paying the most with some cities averaging a whopping $2,400 a year.
5. Mississippi
Severe weather is the culprit in this state as well. Mississippi gets hit by devastating storms on a regular basis which result in catastrophic losses. When major losses add up, insurers have no choice but to raise rates across the entire state. Annual premiums run $1,455 in Mississippi.
4. Texas
Homeowners insurance runs an average of $1,587 per year in the Lone Star State, which locks it into the number four spot. It’s not just hurricanes that push up rates in Texas, hail is also a major factor. Hail can do serious and expensive damage to siding and roofs. According to the Insurance Information Institute, Texas almost always makes it into the top five states for the highest amount of catastrophic losses in the country.
3.Oklahoma
The top 3 is rounded out by Oklahoma with an annual premium of $1,641. Weather is a big factor in the Sooner State. In 2013, Oklahoma was number one in the country for catastrophic losses at over $2 billion. While tornadoes are a big deal in Oklahoma, wildfires, flooding and earthquakes are also common.
2. Louisiana
Louisiana hit the big number two with an average premium of $1,778. Hurricanes and other severe storms help make Louisiana one of the most expensive states in the country when it comes to homeowners insurance. Lawsuits are another big factor in Louisiana. High rates of litigation in regards to home insurance claims are common.
1. Florida
The Sunshine State is number one in the country with an average homeowner premium of $2,038. Florida has a number of factors that are responsible for high rates. High property values combined with the fact that eight out of the top 12 costliest hurricanes in United States history hit Florida mean residents in this state are almost always at the top of the list.
Average Rates Per Coverage Type
Below you can choose any state to review average rates per coverage type. Coverage types will include dwelling fire, HO-1, HO-2, HO-3, HO-5 and HO-8. Additional details will be explained per coverage type. You can also compare your states average premiums against the national averages.
Tips to Save Money
Here are a few tips on how to save money on your homeowners insurance regardless of what state you call home:
- Shop Around: This is the best way to lower your premium. Insurers rate risk differently so the trick is to find the insurer that likes your type of risk. Shop your coverage once a year and get quotes from at least five different insurance companies. We can help, fill out our quick and easy form and our national insurance partners will send their best quotes directly to your inbox.
- Bundle It Up: Bundling your homeowners, auto and life insurance with the same insurance company will result in a significant discount, sometimes up to 25 percent. Ask your agent to make sure you are receiving all discounts that are available to you.
- Secure Your Home: This is especially important if you live in a state where severe weather is a factor. Adding storm shutters, a sprinkler system and even a monitored security system can help lower your premium. Ask your agent what upgrades to your home will net the largest discount.