What’s the average home insurance rate for a $300K home in 2024?

09 Dec

A recent report from Insurance.com found that the average homeowners insurance rate for a $300,000 in homeowners coverage hit $2,777 per year which breaks down to $231 monthly. 

The cost of homeowners insurance in some states can be extremely expensive, for years Florida has been know to have the highest premiums in the nation. When Insurance.com ran the numbers, Oklahoma was the most expensive state in the country for homeowners coverage with an average annual premium of $5,317. Hawaii was on the other end of the spectrum at $582 a year. 

Oklahoma is located in Tornado Alley which sees plenty of severe weather which will almost always result in higher premiums. States that experience natural disasters, such as tornadoes, wildfires, or hurricanes will typically have higher insurance rates than less severe weather prone states. 

States with the most expensive homeowners insurance rates

The Insurance.com report found that the following states have the highest annual homeowner insurance rates in the U.S.:

All of these states are no stranger to severe weather including tornadoes which can do massive damage. Frequent severe weather events will almost always lead to higher homeowner rates as insurers are on the hook to repair or replace your home if it is damaged in a storm.

States with the lowest rates for homeowners insurance rates

These states have the lowest annual homeowner rates in the country:

The majority of these states are located in areas where natural disasters are not common. In addition, Hawaii has strict building codes that help prevent damage from smaller storms and help keep homeowners insurance affordable. 

As climate change continues to spawn more frequent and severe storms, insurers have been raising rates to match the risk they now face. Data shows that severe weather events are increasing with 28 storms causing at least a $1billion hitting the U.S. last year. 

In addition to more frequent storms, insurers may also raise rates if the cost of building materials or labor increases as this increases insurers cost for repairs or rebuilding. Experts predict that homeowner insurance rates will climb between 10-15% this year which could add $100 to $250 a year to most premiums. 

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