How Much Does Home Insurance Cost on Average?

The average home insurance policy is $1,477 a year

The average home insurance policy is $1,477 a year but is subject to change based on the value of your home, your location, and the amount of coverage you purchase. Let’s take a closer look at each of these factors to give you an idea of how much your home insurance will cost.

The Value of You and Your Home

Unsurprisingly, your home itself will have an impact on the cost of your insurance. The older your home, the more you can expect to have to pay. The cost of policies are also determined by what is called “attractive nuisances.”

These “nuisances” are potentially dangerous items and installments, including everything from pools and fire pits to trampolines and trees close to the home. Anything that has the potential to cause harm or damage will hike up the price of your policy.

Not only is your home considered, but you are as well. If you have a history of insurance claims, your costs will go up. Providers also consider your credit score—the lower your score, the higher the average cost of home insurance.

Average Cost of Home Insurance By State

Location is one of the biggest determining factors of your home insurance costs. These are the average least expensive premiums in the U.S.:

  • Hawaii: $396
  • Delaware: $589
  • Vermont: $681
  • New Hampshire: $709
  • Oregon: $776

These low prices are due mostly to low weather and natural disaster risk, and/or what is covered. Hawaii, for instance, has a very high chance for natural disasters—basic home insurance policies do not, however, cover hurricanes, therefore the price is lower.

Some states also don’t allow for premiums based on your credit score, which also contributes to lower prices.

Tornadoes, on the other hand, are covered in basic home insurance. So, the average most expensive premiums are primarily in “tornado alley:”

  • Oklahoma: $4,067
  • Kansas: $3,019
  • Nebraska: $2,787
  • Texas: $2,589
  • Arkansas: $2,302

More Coverage Means Higher Costs

And, of course, one factor that greatly determines your costs is the amount of coverage you have. The more you want to be covered, the more you pay.

This goes hand-in-hand with the value of your assets—the more expensive your insured home and items, the more insurance you need to purchase for it.

The amount you pay on a monthly basis is also determined by your deductible. In the event of an insured accident, you’ll have to put some money down for the policy to cover the rest.

Connect with Us for an Easy, Affordable Insurance Plan

Insurance is expensive, and prices can skyrocket for factors out of your control. But you know what is under your control? Finding the best possible home insurance policy for your budget, and the easiest way to do it is with a company that has you and your family in mind.

When you work with Redwood, you know you’re getting the best. Call Redwood Agency Group to get started!