The Definitive Guide to Homeowners Insurance

By LoweredRates.com

While owning a home may be a major milestone for many people, it can result in plenty of expenses and headaches, particularly if accidents occur. Home insurance was created to cut down on the risk that homeowners have to bear, ensuring that they’ll be covered if the worst comes to pass.

Insurance of any type is a tricky topic, and there’s plenty of jargon and other information that may not immediately be obvious to the inexperienced buyer. Matters like the difference between property and liability coverage may fly right over a prospective buyer’s head, so many customers choose to do their research first.

This informational guide will cover everything that buyers may need to know about home insurance. From the basics of home insurance to the finer points of what influences someone’s rate, the info covered should be useful to first-time and returning home insurance buyers alike.

What is a Home Insurance Policy?

Outdoor of a house with 2 chairs

In the simplest terms, a home insurance policy is a form of insurance designed to cover private residences. This residence doesn’t necessarily have to be a house, as there are forms of home insurance that can cover apartments and condos. Keep in mind that home insurance doesn’t apply to renters, as that’s a whole separate category of coverage.

There are many different forms of home insurance policies, some of which are meant to cover specific hazards, while others will cover particular dwellings, like old homes or condos. We’ll take a more detailed look at the types of home insurance shortly, but first, let’s discuss why many homeowners choose to purchase insurance in the first place.

Why Do Homeowners Buy Insurance?

Of course, the most obvious reason to buy insurance is that it reduces the risk of losing the money that a homeowner has invested in their residence. This can include the money that went into building or purchasing the house, as well as what was paid for the items inside of the home.

Beyond cutting down on the personal risk of homeownership, there are more pressing reasons for many buyers to get home insurance. Many financial institutions or money lenders will refuse to grant a homeowner a mortgage if their dwelling doesn’t meet their minimum insurance standards.

How Has Home Insurance Changed Over the Years?

In its modern incarnation, home insurance has existed since the 1950s, when policy forms allowed homeowners to group all types of coverage on a single policy. Historically, the greatest threat to homes has been from fire. However, other threats have been growing more prevalent in recent decades.

In the past three decades, more significant numbers of homes have been destroyed by catastrophic events than ever before. This has naturally driven up the price of home insurance, and rates show few signs of diminishing.

Property Coverage vs Liability Coverage

There are two forms of coverage provided by a typical home insurance policy: property coverage and liability coverage.

Property coverage will pay out if any of the undersigned’s property is damaged in an unforeseen event. This can include natural disasters, fires, freak weather conditions, falling trees, and more. Some forms of property coverage may also extend beyond the immediate structure of a house, and they may include a pool or other parts of the property.

The other form of coverage that one will typically find in a standard home insurance policy is liability coverage. This will apply to people who are not covered by your policy because they do not live in your house. If someone has their property damaged on your property or is injured or even killed, liability coverage will cover your legal responsibility.

Keep in mind that liability coverage may also apply to damage in the immediate area caused by an element of your property. This can include something like a tree being uprooted and damaging a vehicle on the street.

A white home with a garden

Types of Home Insurance: HO-1 to HO-8

HO-1

HO-1 is also known as basic form home insurance, and it will cover a home from the ten basic perils:

  • Fire and smoke
  • Lightning
  • Hail and wind damage
  • Explosive damage
  • Vandalism
  • Theft
  • Rioting and civil upheaval
  • Damage caused by ground vehicles
  • Damage caused by aircraft
  • Volcano damage

Since HO-1 is such a basic form of home insurance, it doesn’t include liability coverage, being limited to only property coverage against the ten perils above. While it may be possible to get insurance for belongings with an HO-1 policy, they are not typically included and will have to be added on.

While HO-1 policies used to be popular with homeowners in the past, they are somewhat outdated. Many mortgage companies consider the HO-1 to be insufficient, and what few HO-1 policies are available typically aren’t worth it compared to more economically-feasible options.

HO-2

While the HO-2 (also known as broad form) policy is more popular than the HO-1, it is still less prevalent than the ubiquitous HO-3. This kind of insurance will protect a home from everything mentioned in an HO-1 policy, but it will feature the following additions:

  • Damage from falling objects like trees
  • Frozen HVAC systems
  • Collapses or damage due to snow, sleet, and ice
  • Sudden pipe damage
  • Accidental water overflows
  • Accidental electrical mishaps

This form of insurance may also cover belongings and liability, but that’s determined on a case-by-case basis. Neither of these forms of coverage is guaranteed in an HO-2 policy.

HO-3

The most common form of home insurance is the HO-3 variety, also known as special form insurance. The HO-3 contains all of the perils named in the HO-2, but it goes a step further. The HO-3 also covers your home if it’s damaged by anything that isn’t mentioned in the policy exclusions.

Where the previous two policies would only cover named perils, the HO-3 policy covers all perils which aren’t brought up in the exclusions. These policies typically include the home and any structures that are attached to it. HO-3 policies may also include insurance for belongings and personal liability.

Due to the large degree of customization available to insurance providers and potential clients, HO-3 insurance policies can vary immensely based on the situation. The most common exclusions in these policies include damage from floods and earth movements like earthquakes. Homeowners will usually need to purchase additional coverage for these perils.

Due to the sheer variety of HO-3 policies, homeowners may want to pay close attention to the details of their coverage with their insurance provider.

HO-4

HO-4 policies aren’t meant for homeowners, as these are renter’s insurance policies, also known as tenant’s forms. This is because an HO-4 will only cover personal liability and the belongings in a building, leaving the dwelling itself to be insured by a different policy.

Belongings will be protected from the kind of damage covered in a broad form insurance policy (or HO-2).

HO-5

The HO-5 is known as the comprehensive form, and it’s another form of open-peril policy, like the HO-3. This means that it will cover every peril that is not mentioned in the list of exclusions. While these policies tend to be a little more expensive than HO-3 home insurance, they will have fewer exclusions.

Earth movements, floods, and water damage are still excluded from this kind of policy. Infestations, wear-and-tear, mold, pets, and the foundation shrinking or settling are other common exclusions in an HO-5 policy.

HO-5 is the most comprehensive form of home insurance available, as the following three options are specialized types of insurance for specific kinds of homes.

HO-6

The condo form is the HO-6, and its coverage extends to the walls, floors, and ceiling of a condo unit, but no further beyond them. This is because the structure itself will be insured by the landlord or the homeowner’s association, separately from the condo units themselves.

This kind of policy will apply to the same hazards as a typical basic home insurance policy, and HO-6 insurance can also include provisions for personal liability and belongings.

HO-7

The HO-7 is the mobile home form, which provides the same protection as an HO-3, though it applies to mobile homes. Mobile and manufactured homes don’t fall under the same category as permanent, fixed residences, so they are ineligible for regular home insurance, so the HO-7 exists.

HO-8

The final type of home insurance is HO-8 or the older home form. This kind of coverage is ideal for older dwellings that require special exceptions in their coverage due to the techniques or materials used in their construction. These policies may also include provisions for wear and tear and other threats to older homes.

Common Home Insurance Terms

While insurance jargon can be relatively opaque to outsiders, it’s relatively straightforward once you understand a few key terms. This section will go over some of the most common insurance terms and what they mean.

Deductible

If you end up having to make a claim, your deductible will be the amount of money that you have to pay towards the damage before your insurance company picks up the slack. For example, a home insurance policy with a $1000 deductible will not pay out until the owner has invested $1000 towards the repairs out of their pocket.

A deductible will influence the cost of a home insurance premium, with a higher deductible lowering your rate. Clients who opt for a higher deductible take the risk that they may have to spend more on their own in an emergency in exchange for lower annual home insurance rates.

Types of Deductibles

There are a few different kinds of deductibles. The most common variety is the fixed cost deductible, which requires the policyholder to pay out a fixed amount of money before the claim is paid out. On the other hand, percentage deductibles will need the owner to pay a percentage of their home’s market value before payout.

Disaster deductibles are special rules that alter how a deductible works in the event of certain meteorological events. For example, a hurricane deductible may kick in when a storm is officially classified as a hurricane, and it may switch your deductible from a fixed cost to a percentage.

Along with hurricanes, hail and earth movements will usually feature percentage-based deductibles. The only disasters that commonly feature fixed-cost deductibles are floods, and some insurance providers will still mandate one based on a percentage value of your home (between 2% and 20%).

Exclusion

As can be deduced from the name, an exclusion is anything excluded from coverage in a policy. These are typically featured in open-peril policies. In these home insurance policies, anything that doesn’t appear in the list of exclusions is a covered peril.

Premium

Your insurance premium is the rate that you pay for your insurance policy. Premiums can either be defined through a monthly rate or an annual one.

Depreciation

Depreciation is a phenomenon that occurs to any item or product over time. It is the decrease in the item’s value as it ages and gets worn out. Keep in mind that not all homes will depreciate as they age, though the vast majority will. Homes that are in the right area and are adequately maintained may increase in value throughout their lifespan.

With home insurance, providers may account for depreciation in your payout, and this is the primary difference between ACV and RCV, which will be covered next.

Actual Cash Value

ACV (or Actual Cash Value) is a coverage method that accounts for the depreciation of each object in the payout. This means that if an older home is damaged or if older belongings are lost, the amount paid out will be lower.

Though this method will likely pay out less than the market value of a house, it will typically feature lower insurance premiums. ACV policies are preferred in areas where catastrophic damage is less likely, and any future claims are likely to be for less severe issues or damage.

Replacement Cost, Guaranteed Replacement Cost, and Extended Replacement Cost

RCV (or Replacement Cost Value) is the value of a dwelling and belongings at their current value instead of their depreciated value. Ideally, this will allow a homeowner to rebuild their home or repurchase the items that were lost and are now being covered by the policy.

Of course, if the cost of rebuilding the home exceeds the policy’s limits, the insurance company won’t pay out any more money. This is where extended, and guaranteed replacement cost policies come into play. With an extended replacement cost, the insurer will stretch your limits by up to 20% only if you need to rebuild your home.

Guaranteed replacement costs take it a step further. This kind of coverage will pay for the complete rebuild of a home, even if it exceeds the policy limits.

Of course, extended and guaranteed replacement coverage can drastically increase a home insurance premium. Some homeowners will compare the value of these forms of coverage to increasing their policy limits.

How Are Home Insurance Premiums Priced?

The price of home insurance depends on a range of factors, some of which are dependent on the immediate property and where it’s located. Other factors will depend on the dwelling itself, including its age, level of maintenance, fire potential, and other factors.

Finally, an insurance policy will depend on the customer, as the insurance company will factor in their credit score, history as a customer, and other factors. Here are some of the things that will directly influence the cost of a home insurance policy.

Environmental Factors

The location of a home can significantly affect how much an owner can expect to pay for home insurance. Even things like the frequency of claims from neighbors may influence a homeowner’s insurance premium.

Crime Rate

One of the main contributors to high home insurance prices is the crime rate in the area around the homeowner’s property. Places with a higher crime rate will see a higher claim rate since burglaries, vandalism, and other forms of property damage may be more common in an area.

Along with property damage, more crime in an area may increase the risk of a policyholder being held liable for injuries on their property. The lower average property values often mitigate the effects of a higher crime rate on insurance premiums in areas with frequent crime, so costs will rarely get exorbitant.

fence covered with snow

Weather

The weather in a home’s area will also significantly impact the rates that an owner would have to pay to have it insured. For example, areas with excessive rainfall may be at higher risk of flooding, and year-round rains can also increase the rate of wear on a building’s exterior.

Areas with more common thundershowers will be at higher risk of lightning strikes and the fires that they can cause. Sleet and hail are both capable of doing tremendous damage to the roof and windows of a home. Cities like Cheyenne have notably higher insurance premiums because of how frequent hailstorms are there.

Winter weather is another serious matter for homeowners looking for insurance, primarily if their property is in a northern state. Large amounts of snowfall can cause structural damage to the roof of a building, and improperly-maintained pools can end up getting damaged if they freeze over.

Winter weather can also increase the likelihood of liability claims since a patch of ice on a home’s walkway may be a lawsuit waiting to happen. Even hot and dry climates may not be ideal, as they can increase the risk of wildfires, which are responsible for an average of 7 million acres burned per year in the USA.

a lot of lightning

Natural Disasters

The mention of wildfires brings us to the next environmental factor that can influence insurance rates: the prevalence of natural disasters. Due to America’s landmass, the natural hazards that threaten a homeowner’s area will depend on their state and region.

Property owners on the west coast will frequently have to deal with earthquakes and other disasters related to earth movements. Most basic policies won’t include coverage for earth movements like quakes and landslides, so homeowners typically purchase additional coverage for them.

However, apart from avalanches, rockslides, mudslides, and earthquakes, most natural disasters should be covered by basic home insurance. These can include natural disasters where the main threat is the wind, like tornadoes and hurricanes (both of which are covered under wind damage).

However, keep in mind that hurricanes can cause flooding, which is another form of damage that isn’t usually covered by a basic policy. In the case of flood insurance, many homeowners choose to opt into the national program instead of paying for private flood insurance.

Despite their rarity, active volcanoes are still a tangible threat in America, and they are typically covered in a basic policy, and they are often considered fire damage. Keep in mind that any earthquakes or earth movements related to the volcano may not be covered.

Forest bushfire

Proximity to Police and Fire Stations

Another thing to consider is a home’s distance to emergency services, like police stations and fire stations. A quicker response time means that your home will be less likely to get severely damaged by fire or vandalism.

On the other hand, a home that is far from essential services may end up being a total loss by the time fire engines arrive to put out the blaze.

Proximity to Bodies of Water

We’ve already mentioned floods in the previous section about natural disasters. Insurance companies will typically look at how close a home is to the nearest body of water to determine the likelihood of a home getting flooded.

Along with the distance between a house and the water, it will also depend on the difference in height between the two. Homes below sea level may be much more likely to flood than those higher than the water.

a home in night with lights on and pool in the backyard

Property Factors

Along with where the property is located, there are many factors about the property itself that can influence insurance rates. These will typically be related to the home’s safety, construction, and several other aspects.

Value of the Dwelling

The first thing that insurance companies will consider about a home that they’re insuring is its value, as that will determine how much they would have to pay out in the event of a total loss. While the amount of the payout depends on the policy itself, it will always be based on the home’s market value.

Keep in mind that the value of a property doesn’t entirely depend on the house itself, as changes in the neighborhood can also influence drops or rises in a home’s worth. The more the insurance company may have to pay out eventually, the more you’ll have to pay for coverage.

Age of the Dwelling

The age of a home can also affect how much the owner pays to keep it insured. Older homes are riskier for insurance companies, as they’ll be much more susceptible to wear and tear. The old age of these homes can also make the materials used in their construction rarer and more expensive.

Older homes may also have harmful substances used in their construction that may need to be removed, and these can cause liability problems for the owner if a guest falls ill. Of course, an insurance premium will often depend more on the actual condition of a home than the age.

Some homes can last 100 years and be in better condition than buildings that have been around for only ten years. The state of a dwelling is dependent on its construction quality and the amount of effort the owners (both past and present) have put into maintaining it.

Condition of the Roof

To insurance companies, one of the most crucial parts of a home to examine is the roof, as it can result in some of the priciest repairs. Roof repair is already a precarious and pricey business, but that’s not even considering the damage that a poorly-maintained roof can cause to other parts of a home.

The most dangerous possibility is a roof collapse, though these are relatively uncommon in the more temperate states, as it will often take worse conditions than poor maintenance to collapse a roof. However, in snowy states, weak roofs can get weighed down with snow and end up caving in.

In rainy states, a bad roof can cause problems of a different nature: mold. Water infiltrating the ceilings, walls, and floors of a home can influence the spread of mold, and getting it out of the building once it has taken root is a costly procedure.

At the very least, a leaky roof can make a home uncomfortable to live in, and it can warp the building materials, compromising a building’s structural integrity. Expect your roof to be thoroughly inspected if you’re getting a new home insurance policy.

Materials

As mentioned briefly, the materials used in a home’s construction will also influence the insurance premium. Since these materials may be costlier for the insurance company to replace, they will demand a higher premium. Along with the materials themselves, consider the labor costs involved in their installation.

Often, more expensive building materials will require better-trained contractors who may charge more for their work. However, the right building materials can may lower the rates that a homeowner can expect to pay for their insurance.

For example, in states like Kansas, where tornadoes are prevalent, brick homes will get better rates than wooden dwellings, as they will be less likely to sustain damage from high-speed winds. In states like California, where earthquakes are a more significant threat, the opposite is true. The structure of a wooden house can flex, making it much more resistant than brick in an earthquake.

Outdoor Amenities

Many homeowners don’t realize the impact that things like a swimming pool or a trampoline can have on their insurance rates. While neither of these things will significantly increase the risk of property damage, they can result in more opportunities for the owner to be liable for injury or death.

In the USA, an average of 5000 people per year receive emergency care due to injuries related to a swimming pool. With over 100 000 people being injured every year by trampolines, it’s easy to see how these two additions to a home can result in higher premiums just because of the potential liability.

To a lesser extent, jacuzzis and hot tubs can also increase the risk of drowning, though they won’t affect your premium as adversely as a pool due to their lower risk of drowning.

Personal Factors

Finally, after the property and where it’s located, insurance companies will look at the potential customer to determine their rate. Insurance companies will look at a range of factors to determine how likely a potential customer will be to file a claim.

Credit Score

Since insurance isn’t a loan, many customers are surprised that their credit score can affect their rates. When insurance companies look at a potential client’s credit score, they are more interested in how it represents their personal responsibility, rather than their financial responsibility.

The line of reasoning is that a financially responsible individual will be more likely to keep up to date with things like essential repairs, and will be less likely to damage their property. This is often one of the few indicators that insurance providers have when taking on a new customer, and it gives them some idea of what to expect.

The Customer’s History with the Company

If a homeowner has been with an insurance company for a few years, their rate will start depending more on their history. Homeowners who are making frequent claims will see their premiums begin to soar, as this makes them a bigger risk for the insurance company to cover.

On the other hand, lifelong customers who have never filed a single claim will likely see significant cuts to their insurance premiums. Of course, beyond a customer’s history with a company, there are a few other ways to get a cheap insurance rate.

Discounts

Many insurance providers will offer their customers discounts based on specific criteria. For example, many companies will incentivize new homeowners to get insurance by offering a discount on homes that have been purchased within the last year or less.

Other discounts are provided for extra safety equipment, such as having more fire alarms than required by the fire code. Advanced security systems are also popular with insurance companies, as they will make a home less of a target for robbers and vandals.

Pets

Another thing to consider is your pet, as some insurers aren’t comfortable providing home insurance for clients who own aggressive dog breeds or other potentially dangerous pets. Here are some of the breeds that insurance companies may be uncomfortable working with because of their high bite rates:

  • Malamutes
  • Chow Chows
  • Huskies
  • Dobermans
  • German Shepherds
  • Pit Bulls
  • Rottweilers
  • Akitas
  • Presa Canarios

These breeds tend to be the most troublesome for insurance companies to work with. If a company doesn’t refuse to insure you outright, it will likely increase your premiums because of the dog’s presence. Keep in mind that this only applies to some providers.

Others will consider each dog individually, checking how well they’re trained and whether they’ve historically had any incidents of aggression. Other than dogs, certain exotic pets can also increase insurance premiums because of the danger they present. This includes snakes, some birds and lizards, and horses.

A small toy house in plam of a person

Homeowners Insurance Companies

Along with the policy and the kind of coverage required, homeowners may also want to take the time to get acquainted with the insurance companies in their area. There are many insurance companies in the USA, and some provide more than just a single kind of insurance. They tend to fall into one of two main categories: local insurance companies and national insurance companies.

Local Home Insurance Companies

Local insurers tend to be a little more personal than national providers, as they have more time to deal with their clients one-on-one. However, this doesn’t necessarily mean that they will always be available, as there is no guarantee that they will have the resources to maintain a 24-hour hotline.

Another advantage to local companies is that they typically offer more competitive rates than their national counterparts, often making them the cheapest choice in their areas.

Local companies also have a few disadvantages, and one of the issues is that their technology and infrastructure typically lags behind the big players. Many local insurers may not have an app from which their clients can access information about their policy and premiums.

While most national insurance companies are run somewhat similarly, customers may have to deal with a bit of adjustment when working with a local insurance company. Local carriers often don’t adhere to the same discount standards as national carriers, and they may differ in other details.

National Home Insurance Companies

National home insurance companies are the names that you can expect to hear in TV commercials. Companies like State Farm, Allstate, and Progressive are all examples of national home insurance providers. Even USAA, which is only available to current and former military members, is a national provider.

While these companies may not have the time to provide each of their clients with one-on-one customer service and policy personalization, they have advantages when it comes to consistency. Since national providers dedicate more resources to their customer support, clients will have a wealth of FAQs, support lines, and more at their disposal.

Despite their higher rates, national home insurance providers can often provide a broader range of services and benefits.

Insurance Company Ratings (AM Best System)

The AM Best rating system allows clients to compare insurance providers to each other, and it includes a variety of different ratings. The best-known of these is the FSR (Financial Strength Ratings). This metric compares insurers and their ability to meet their ongoing financial obligations.

A company with a good rating will be more likely to pay out in the event of a claim, while a company with a poor rating may be at risk of going under and leaving a client on the hook. Here are AM Best’s FSR ratings:

Rating Symbol Rating Variant Description
A+ A++ These companies are the most likely to meet their financial obligations.
A A- Companies with an A rating are very likely to meet their outstanding obligations.
B+ B++ Companies rated B+ or B++ are likely to meet their financial obligations.
B B- These companies have a fair chance of meeting their obligations, though they’re vulnerable to economic shifts.
C+ C++ In this category, the likelihood of meeting obligations is marginal. These companies are vulnerable to economic shifts, as well.
C C- Companies with this rating have a weak chance of continuing to meet their obligations. Very vulnerable to the economy.
D None Insurance providers who are unlikely to meet their obligations. Extremely volatile and vulnerable to the economy.

Rating variants can come in two forms. For the “+” ratings, the modification is an extra “+,” and that indicates that they are at the top of their categories. Variants with a “-” mean that the company is ranked lower in their class than the others. This system provides further granularity without overcrowding the rating table.

Reasons Why an Insurer May Not Provide a Policy

Keep in mind that insurers reserve the right to deny any potential client a policy, and there are many reasons why they do so. It usually boils down to the policy being too risky for them, whether it’s due to personal factors, environmental factors, or the property.

Often, some insurers in a state will provide second-chance insurance, which is meant for these high-risk cases. While this kind of coverage is pricey, it allows customers with extenuating circumstances to be able to insure their homes in the first place.

Homeowners Insurance Across the 50 States

a home with lots of greenery outside it

Now that the basics have been covered, it’s time to take a more detailed look at homeowners insurance across each of the fifty states. While home insurance may not vary from state to state as much as auto insurance, it can still be heavily influenced by geography.

Research shows that the most expensive state in the US for home insurance is Nebraska, while the cheapest is Hawaii.

Alabama

Fun fact: The real “Sweet Home Alabama” is a historic residence in Bessemer.

Average insurance rate: $1,116 – $1,433

Risk factors: Tornadoes, hurricanes, and lightning

5 Most Popular Companies:

  1. State Farm
  2. Alfa Mutual Group
  3. Allstate Corp.
  4. USAA Insurance Group
  5. Travelers Companies Inc.
Company Market Share
State Farm Mutual Automobile Insurance 18.0%
USAA Insurance Group 6.6%
Farmers Insurance Group of Companies 5.7%
American Family Insurance Group 3.9%
Chubb Ltd. 2.9%

Add-ons popular in the state: Flood insurance and watercraft endorsements

Overview

Due to the prevalence of natural disasters in Alabama, it’s one of the more expensive states in the country for home insurance. This is evidenced by how none of the ZIP codes in the state have a lower average rate than the national average.

Alaska

Fun fact: Did you know that many homes in Alaska are only accessible by airplane? This contributes to the high prevalence of pilots in the state.

Average insurance rate: $959 – $1,002

Risk factors: Freezing damage as a result of cold weather and earth movements

5 Most Popular Companies:

  1. State Farm
  2. Allstate Corp.
  3. USAA Insurance Group
  4. Liberty Mutual
  5. COUNTRY Financial
Company Market Share
Allstate Corp. 8.4%
Travelers Companies Inc. 4.1%
Liberty Mutual 6.5%
Travelers Companies Inc. 4.1%
Erie Insurance Group 1.7%

Add-ons popular in the state: Earth movements coverage, watercraft endorsements

Overview

Due to the severe threat of cold weather and Alaska’s high level of tectonic activity, insurance is crucial to many of this state’s homeowners. The relatively high average rate is due to the heightened risk of these phenomena.

Arizona

Fun fact: Taliesin West was the winter home of famed architect Frank Lloyd Wright, located in Scottsdale, AZ.

Average insurance rate: $825- $966

Risk factors: Wildfires and floods

5 Most Popular Companies:

  1. State Farm
  2. Farmers Insurance Group
  3. USAA Insurance Group
  4. Liberty Mutual
  5. American Family Insurance Group
Company Market Share
USAA Insurance Group 6.6%
Liberty Mutual 6.5%
Travelers Companies Inc. 4.1%
Nationwide Mutual Group 3.1%
Chubb Ltd. 2.9%

Add-ons popular in the state: Flood insurance

Overview

Arizona is surprisingly vulnerable to floods from rain surges, and also one of the most common sources of wildfires in the US. This comes together to make home insurance in the state relatively pricey.

Arkansas

Fun fact: Ernest Hemingway’s old writing studio in Piggot is now a museum. He once saved his manuscripts from a fire in this home by throwing them out of a window.

Average insurance rate: $825- $1,373

Risk factors: Tornadoes and flooding

5 Most Popular Companies:

  1. State Farm
  2. Farm Bureau Mutual Insurance Co. of Arkansas
  3. Shelter Insurance
  4. Allstate Corp.
  5. Farmers Insurance Group
Company Market Share
USAA Insurance Group 6.6%
Farmers Insurance Group of Companies 5.7%
Travelers Companies Inc. 4.1%
Nationwide Mutual Group 3.1%
Chubb Ltd. 2.9%

Add-ons popular in the state: Flood insurance and sewer backup endorsement

Overview

Due to the relative lack of home insurance claims in the state, Arkansas is in the middle of the pack, with home insurance rates that are closer to the affordable side of the spectrum.

California

Fun fact: La Jolla, California, is home to a row of “munchkin homes.” These houses are built on a hill so they look smaller than they really are from the front.

Average insurance rate: $966 – $1,008

Risk factors: Earthquakes, landslides, wildfires, and floods

5 Most Popular Companies:

  1. State Farm
  2. Farmers Insurance Group
  3. Liberty Mutual
  4. CSAA Insurance Exchange
  5. Allstate Corp
Company Market Share
Farmers Insurance Group of Companies 5.7%
Travelers Companies Inc. 4.1%
American Family Insurance Group 3.9%
Nationwide Mutual Group 3.1%
Erie Insurance Group 1.7%

Add-ons popular in the state: Earth movement coverage and flood insurance

Overview

Due to the presence of several fault lines within its borders, California is one of the most earthquake-ridden states in the country. Many owners consider earth movement insurance to be necessary here.

Colorado

Fun fact: You can find Mork & Mindy’s house in Boulder, Colorado.

Average insurance rate: $994 – $1,495

Risk factors: Wildfires

5 Most Popular Companies:

  1. State Farm
  2. USAA Insurance Group
  3. Liberty Mutual
  4. Allstate Corp.
  5. American Family Insurance Group
Company Market Share
USAA Insurance Group 6.6%
Travelers Companies Inc. 4.1%
American Family Insurance Group 3.9%
Nationwide Mutual Group 3.1%
Erie Insurance Group 1.7%

Add-ons popular in the state: Scheduled personal property add-ons

Overview

While Colorado is relatively free of natural disasters, wildfires are an exception. Harsh winters are also a motivating factor in many homeowners’ decisions to get insurance in this state.

Connecticut

Fun fact: Until the age of 14, J.P. Morgan grew up in a house in Hartford.

Average insurance rate: $1,058 – $1,479

Risk factors: Hurricanes and nor’easters

5 Most Popular Companies:

  1. Liberty Mutual
  2. Chubb
  3. Travelers Companies Inc.
  4. State Farm
  5. USAA Insurance Group
Company Market Share
State Farm Mutual Automobile Insurance 18.0%
Liberty Mutual 6.5%
Travelers Companies Inc. 4.1%
American Family Insurance Group 3.9%
Nationwide Mutual Group 3.1%

Add-ons popular in the state: Watercraft endorsements

Overview

With some of the highest real estate values in the country, Connecticut’s insurance rates are heightened by the prevalence of pricey homes.

Delaware

Fun fact: The first log cabins ever built in America can be found in Delaware.

Average insurance rate: $833 – $1,172

Risk factors: Hurricanes and nor’easters

5 Most Popular Companies:

  1. State Farm
  2. Liberty Mutual
  3. Nationwide Mutual Group
  4. USAA Insurance Group
  5. Allstate Corp.
Company Market Share
Liberty Mutual 6.5%
Farmers Insurance Group of Companies 5.7%
American Family Insurance Group 3.9%
Nationwide Mutual Group 3.1%
Chubb Ltd. 2.9%

Add-ons popular in the state: Sewer backup endorsement

Overview

Being one of the smallest states in the country, Delaware is also one of the most affordable ones for homeowners insurance, placing near the bottom of the list.

Florida

Fun fact: Homes in Florida have doors that open outward to prevent hurricanes from blowing them open.

Average insurance rate: $1,117 – $1,951

Risk factors: Hurricanes and floods

5 Most Popular Companies:

  1. Universal Insurance Holdings Inc.
  2. State Farm
  3. Tower Hill
  4. Citizens Property Insurance Corp.
  5. USAA
Company Market Share
Allstate Corp. 8.4%
USAA Insurance Group 6.6%
Liberty Mutual 6.5%
American Family Insurance Group 3.9%
Nationwide Mutual Group 3.1%

Add-ons popular in the state: Flood insurance and watercraft endorsement

Overview

Florida is one of the riskiest states in the country for insurers due to the severe prevalence of hurricanes and tropical storms. Some insurers won’t even do business in the state because of this, and it results in high home insurance premiums.

Georgia

Fun fact: The Techwood Homes in Atlanta were the country’s first public housing project, opened in 1935.

Average insurance rate: $1,137 – $1,267

Risk factors: Hurricanes, tornadoes, and flooding

5 Most Popular Companies:

  1. State Farm
  2. Allstate Corp.
  3. USAA Insurance Group
  4. Travelers Companies Inc.
  5. Liberty Mutual
Company Market Share
USAA Insurance Group 6.6%
Liberty Mutual 6.5%
Farmers Insurance Group of Companies 5.7%
Travelers Companies Inc. 4.1%
Nationwide Mutual Group 3.1%

Add-ons popular in the state: Flood insurance

Overview

While natural disasters are prevalent in Georgia, the high rate of vandalism also results in more claims (and therefore increased premiums).

Hawaii

Fun fact: No home on the island of Kauai is allowed to be taller than a palm tree.

Average insurance rate: $977 – $1,102

Risk factors: Earthquakes, floods, and volcanoes

5 Most Popular Companies:

  1. State Farm
  2. Heritage Insurance
  3. Tokio Marine Group
  4. USAA Insurance Group
  5. Allstate Corp.
Company Market Share
State Farm Mutual Automobile Insurance 18%
USAA Insurance Group 6.6%
Liberty Mutual 6.5%
Farmers Insurance Group of Companies 5.7%
American Family Insurance Group 3.9%

Add-ons popular in the state: Earth movements coverage and flood insurance

Overview

Hawaii is one of the only states in America that has a significant threat of volcanic eruptions. In spite of this, insurance rates are relatively low in this island state.

Idaho

Fun fact: Ernest Hemingway lived in a house in Ketchum, Idaho, until his death.

Average insurance rate: $730 – $966

Risk factors: Wildfires and flooding

5 Most Popular Companies:

  1. State Farm
  2. Liberty Mutual
  3. Farmers Insurance Group
  4. Farm Bureau Mutual Insurance Co. of Idaho
  5. USAA Insurance Group
Company Market Share
Allstate Corp. 8.4%
Liberty Mutual 6.5%
Farmers Insurance Group of Companies 5.7%
Travelers Companies Inc. 4.1%
Nationwide Mutual Group 3.1%

Add-ons popular in the state: Flood insurance

Overview

Idaho’s low population density and relative lack of disasters make it an affordable state for home insurance, and it places in one of the top ten most affordable.

Illinois

Fun fact: The Great Chicago Fire destroyed over 17 000 homes and other buildings in 1871.

Average insurance rate: $924 – $1,056

Risk factors: Tornadoes, flooding, and mine subsidence

5 Most Popular Companies:

  1. State Farm
  2. Allstate Corp.
  3. COUNTRY Financial
  4. American Family Insurance Group
  5. Farmers Insurance Group
Company Market Share
USAA Insurance Group 6.6%
Farmers Insurance Group of Companies 5.7%
Travelers Companies Inc. 4.1%
Nationwide Mutual Group 3.1%
Erie Insurance Group 1.7%

Add-ons popular in the state: Flood insurance and scheduled personal property endorsement

Overview

Illinois’ insurance prices are around the national average, making home insurance moderately affordable. Though some ZIP codes in Chicago feature extremely high premiums, these are balanced out by other areas in the city and the state.

Indiana

Fun fact: Jim Davis, the creator of Garfield, had a home in Marion, Indiana.

Average insurance rate: $906 – $1,000

Risk factors: Ice storms and tornadoes

5 Most Popular Companies:

  1. State Farm
  2. Allstate Corp
  3. Indiana Farm Bureau Inc.
  4. Liberty Mutual
  5. American Family Insurance Group
Company Market Share
State Farm Mutual Automobile Insurance 18%
Allstate Corp. 8.4%
American Family Insurance Group 3.9%
Nationwide Mutual Group 3.1%
Erie Insurance Group 1.7%

Add-ons popular in the state: Sewer backup and equipment breakdown endorsements

Overview

Indiana is another one of the most affordable states for home insurance in America, placing in the top ten cheapest states thanks to its smaller population and lack of risks to homes.

Iowa

Fun fact: Ames, Iowa, has been listed as the 9th best place to live.

Average insurance rate: $918 -$964

Risk factors: Tornadoes and hailstorms

5 Most Popular Companies:

  1. State Farm
  2. Nationwide Mutual Group
  3. American Family Insurance Group
  4. Farm Bureau Financial Services
  5. Auto-Owners Insurance Co.
Company Market Share
Liberty Mutual 6.5%
Farmers Insurance Group of Companies 5.7%
American Family Insurance Group 3.9%
Nationwide Mutual Group 3.1%
Chubb Ltd. 2.9%

Add-ons popular in the state: Additional wind damage endorsements

Overview

Much like Indiana, Iowa’s insurance rates are helped by its low population density, though Iowa’s hailstorms tend to drive up premiums whenever they occur.

Kansas

Fun fact: Liberal, Kansas, features a home that is modeled exactly after Dorothy’s home in “The Wizard of Oz.”

Average insurance rate: $908 – $1,584

Risk factors: Wildfires and floods

5 Most Popular Companies:

  1. State Farm
  2. American Family Insurance Group
  3. Farm Bureau Financial Services
  4. Farmers Insurance Group
  5. Travelers Companies Inc.
Company Market Share
Allstate Corp. 8.4%
USAA Insurance Group 6.6%
Liberty Mutual 6.5%
Travelers Companies Inc. 4.1%
American Family Insurance Group 3.9%

Add-ons popular in the state: Scheduled personal property and sewer backup endorsements.

Overview

Over the past 70 years, Kansas has had a 90% rate of tornadoes, with only seven years in that period that the state wasn’t struck by one. Understandably, this makes Kansas one of the most expensive states for home insurance.

Kentucky

Fun fact: The only homes in the US built inside of a meteor crater are in Middlesboro, Kentucky.

Average insurance rate: $1,106 – $1,109

Risk factors: Tornadoes, floods, and earthquakes.

5 Most Popular Companies:

  1. State Farm
  2. Kentucky Farm Bureau
  3. Liberty Mutual
  4. Allstate Corp.
  5. USAA Insurance Group
Company Market Share
USAA Insurance Group 6.6%
Farmers Insurance Group of Companies 5.7%
Travelers Companies Inc. 4.1%
American Family Insurance Group 3.9%
Erie Insurance Group 1.7%

Add-ons popular in the state: Flood and earth movement insurance

Overview

Tornadoes in Kentucky aren’t as prevalent as in Kansas, and this helps put them near the middle of the pack, around the national average for home insurance.

Louisiana

Fun fact: The largest mansion in the South constructed after the Civil War is the Nottoway Plantation House in White Castle, Louisiana.

Average insurance rate: $1,108 – $1,968

Risk factors: Hurricanes and floods

5 Most Popular Companies:

  1. State Farm
  2. Allstate Corp.
  3. USAA Insurance Group
  4. Liberty Mutual
  5. LA Farm Bureau Mutual Insurance Co.
Company Market Share
Liberty Mutual 6.5%
Travelers Companies Inc. 4.1%
American Family Insurance Group 3.9%
Nationwide Mutual Group 3.1%
Chubb Ltd. 2.9%

Add-ons popular in the state: Flood insurance and scheduled personal property endorsements

Overview

Louisiana’s insurance rates are moderate to expensive, as insurance companies haven’t forgotten the damage that Hurricane Katrina wrought on the state’s buildings.

Maine

Fun fact: Steven King’s home in Bangor features a gate topped with bats. A fitting home for the Master of Horror himself.

Average insurance rate: $882 – $929

Risk factors: Nor’easters and severe winter weather

5 Most Popular Companies:

  1. State Farm
  2. Liberty Mutual
  3. Allstate Corp.
  4. USAA Insurance Group
  5. Hanover Insurance Group Inc.
Company Market Share
USAA Insurance Group 6.6%
Liberty Mutual 6.5%
Farmers Insurance Group of Companies 5.7%
American Family Insurance Group 3.9%
Nationwide Mutual Group 3.1%

Add-ons popular in the state: Guaranteed replacement cost

Overview

Maine is spared the worst of the Atlantic storms that annually ravage the East Coast, making it one of the most affordable places in the Eastern US for home insurance.

Maryland

Fun fact: The author Tom Clancy grew up in a house in Northwood, Maryland.

Average insurance rate: $1,037 – $1,212

Risk factors: Flooding

5 Most Popular Companies:

  1. State Farm
  2. USAA Insurance Group
  3. Allstate Corp.
  4. Erie Insurance Group
  5. Travelers Companies Inc.
Company Market Share
Allstate Corp. 8.4%
USAA Insurance Group 6.6%
Farmers Insurance Group of Companies 5.7%
Travelers Companies Inc. 4.1%
Nationwide Mutual Group 3.1%

Add-ons popular in the state: Flood insurance and watercraft endorsement

Overview

Maryland is around the middle of the states when it comes to home insurance premiums, and their average cost is largely influenced by the presence of Baltimore and other regions with high population density.

Massachusetts

Fun fact: Rockport, Massachusetts, features a house that is fully made of newspaper.

Average insurance rate: $1,031 – $1,488

Risk factors: Hurricanes and nor’easters

5 Most Popular Companies:

  1. MAPFRE
  2. Liberty Mutual
  3. Safety Insurance
  4. Chubb
  5. Andover Companies
Company Market Share
State Farm Mutual Automobile Insurance 18%
Allstate Corp. 8.4%
Liberty Mutual 6.5%
Farmers Insurance Group of Companies 5.7%
American Family Insurance Group 3.9%

Add-ons popular in the state: Coastal erosion coverage and watercraft endorsement

Overview

Research shows that Massachusetts has the highest median cost of real estate in the United States, and the high property values can make home insurance extremely pricey in this state.

Michigan

Fun fact: The famed magician Harry Blackstone Sr. had a home in Colon, Michigan.

Average insurance rate: $919 – $942

Risk factors: Tornadoes, ice storms, flooding, and lightning

5 Most Popular Companies:

  1. State Farm
  2. Auto-Owners Insurance Co.
  3. Auto Club Insurance Association Group
  4. Hanover Insurance Group Inc.
  5. Allstate Corp.
Company Market Share
Liberty Mutual 6.5%
Farmers Insurance Group of Companies 5.7%
American Family Insurance Group 3.9%
Nationwide Mutual Group 3.1%
Chubb Ltd. 2.9%

Add-ons popular in the state: Flood insurance and sewer backup endorsement

Overview

Michigan’s higher population density and higher-than-average vandalism rate contribute to putting it in the more expensive half of US states for home insurance.

Minnesota

Fun fact: Paisley Park (Prince’s home and production complex) is located in Minneapolis, the city in which he was born and raised.

Average insurance rate: $951 – $1,348

Risk factors: Severe winter weather and strong winds

5 Most Popular Companies:

  1. State Farm
  2. American Family Insurance Group
  3. Farmers Insurance Group
  4. Auto-Owners Insurance Co.
  5. Allstate Corp.
Company Market Share
Farmers Insurance Group of Companies 5.7%
Travelers Companies Inc. 4.1%
American Family Insurance Group 3.9%
Nationwide Mutual Group 3.1%
Erie Insurance Group 1.7%

Add-ons popular in the state: Above-ground water damage endorsement

Overview

With its cold winters, freezing pipes and roof damage are some of the most common sources of home insurance claims in Minnesota. These severe conditions make Minnesota one of the priciest states for home insurance.

Mississippi

Fun fact: John B. Stetson, the person most closely associated with the modern cowboy hat, lived in a home in Dunn’s Falls after the Civil War.

Average insurance rate: $1,099 – $1,537

Risk factors: Hurricanes and floods

5 Most Popular Companies:

  1. State Farm
  2. Southern Farm Bureau Casualty
  3. Allstate Corp.
  4. Nationwide Mutual Group
  5. Liberty Mutual
Company Market Share
Allstate Corp. 8.4%
USAA Insurance Group 6.6%
Farmers Insurance Group of Companies 5.7%
Travelers Companies Inc. 4.1%
American Family Insurance Group 3.9%

Add-ons popular in the state: Replacement cost endorsement and flood coverage

Overview

Much of the threat to homes in Mississippi comes from the Mississippi river flooding, though the small portion of the state on the coast is also vulnerable to hurricanes. Coastal areas in Mississippi tend to have much higher premiums because of this.

Missouri

Fun fact: Mark Twain’s boyhood home was in Hannibal, MO. It is now the Mark Twain Boyhood Home and Museum.

Average insurance rate: $897 – $1,285

Risk factors: Tornadoes, flooding, thunderstorms, and winter storms

5 Most Popular Companies:

  1. State Farm
  2. American Family Insurance Group
  3. Liberty Mutual
  4. Farmers Insurance Group
  5. Shelter Insurance
Company Market Share
USAA Insurance Group 6.6%
Liberty Mutual 6.5%
Farmers Insurance Group of Companies 5.7%
American Family Insurance Group 3.9%
Nationwide Mutual Group 3.1%

Add-ons popular in the state: Flood insurance

Overview

Missouri has some of the highest homeowners insurance rates in the country, which makes sense when you consider the prevalence of storms, tornadoes, and floods.

Montana

Fun fact: The western artist Charles Russell spent the final years of his life in Great Falls, Montana.

Average insurance rate: $948 – $1,174

Risk factors: Flooding and hailstorms

5 Most Popular Companies:

  1. State Farm
  2. Liberty Mutual
  3. Farmers Insurance Group
  4. Mountain West Farm Bureau Mutual Insurance Co.
  5. USAA Insurance Group
Company Market Share
State Farm Mutual Automobile Insurance 18%
USAA Insurance Group 6.6%
Liberty Mutual 6.5%
Travelers Companies Inc. 4.1%
American Family Insurance Group 3.9%

Add-ons popular in the state: Flood insurance and home-based business endorsement

Overview

Montana’s home insurance rates are also relatively high thanks to the common storms in the area, including some of the country’s worst hailstorms.

Nebraska

Fun fact: The first straw-bale homes in the country were built in Nebraska’s Sandhills.

Average insurance rate: $907 – $1,481

Risk factors: Flooding, tornadoes, rainstorms, hailstorms, and thunderstorms

5 Most Popular Companies:

  1. State Farm
  2. Farmers Mutual Insurance Co. of Nebraska
  3. American Family Insurance Group
  4. Farm Bureau Financial Services
  5. Nationwide Mutual Group
Company Market Share
Allstate Corp. 8.4%
USAA Insurance Group 6.6%
Farmers Insurance Group of Companies 5.7%
Travelers Companies Inc. 4.1%
American Family Insurance Group 3.9%

Add-ons popular in the state: Flood insurance

Overview

Nebraska is also one of the more expensive states for home insurance, and this is due to its high rate of tornadoes as well as the host of other natural phenomena that can damage homes in the state.

Nevada

Fun fact: Airbnb has grown extremely popular in Las Vegas, with many tourists choosing it over pricey hotel rooms.

Average insurance rate: $755 – $933

Risk factors: Wildfires

5 Most Popular Companies:

  1. State Farm
  2. Farmers Insurance Group
  3. Allstate Corp.
  4. American Family Insurance Group
  5. Liberty Mutual
Company Market Share
USAA Insurance Group 6.6%
Liberty Mutual 6.5%
Travelers Companies Inc. 4.1%
American Family Insurance Group 3.9%
Chubb Ltd. 2.9%

Add-ons popular in the state: Wildfire defense endorsements

Overview

The lack of natural disasters (aside from wildfires) in Nevada makes it one of the ten most affordable states in the Union for health insurance.

New Hampshire

Fun fact: The only US President to be raised in a house in New Hampshire was Franklin Pierce.

Average insurance rate: $972 -$1,049

Risk factors: Hurricanes, nor’easters, and blizzards

5 Most Popular Companies:

  1. Liberty Mutual
  2. State Farm
  3. Allstate Corp.
  4. USAA Insurance Group
  5. Vermont Mutual Insurance Co.
Company Market Share
State Farm Mutual Automobile Insurance 18%
USAA Insurance Group 6.6%
Farmers Insurance Group of Companies 5.7%
American Family Insurance Group 3.9%
Nationwide Mutual Group 3.1%

Add-ons popular in the state: Scheduled personal property endorsement

Overview

While New Hampshire is on the coast, its position far to the north makes it unlikely to get damaged by tornadoes or other Atlantic storms, reducing the average insurance rates.

New Jersey

Fun fact: In a home in Mahwah, New Jersey, Les Paul invented the electric guitar.

Average insurance rate: $1,052 – $1,192

Risk factors: Hurricanes, nor’easters, flooding

5 Most Popular Companies:

  1. NJM Insurance Group
  2. State Farm
  3. Allstate Corp.
  4. Liberty Mutual
  5. Chubb
Company Market Share
Allstate Corp. 8.4%
Liberty Mutual 6.5%
Farmers Insurance Group of Companies 5.7%
American Family Insurance Group 3.9%
Nationwide Mutual Group 3.1%

Add-ons popular in the state: Flood insurance, sewer backup endorsement

Overview

New Jersey’s combination of high median property values and its vulnerability to Atlantic storms may seem like the perfect combo for a high home insurance rate. Still, it’s surprisingly close to the national average.

New Mexico

Fun fact: Taos Pueblo, New Mexico, has some homes that are still inhabited after 900 years.

Average insurance rate: $949 – $1,017

Risk factors: Wildfires and flooding

5 Most Popular Companies:

  1. State Farm
  2. Farmers Insurance Group
  3. USAA Insurance Group
  4. Liberty Mutual
  5. Allstate Corp.
Company Market Share
Liberty Mutual 6.5%
Farmers Insurance Group of Companies 5.7%
American Family Insurance Group 3.9%
Nationwide Mutual Group 3.1%
Erie Insurance Group 1.7%

Add-ons popular in the state: Flood insurance and equipment breakdown endorsement

Overview

New Mexico is one of the cheaper states for homeowners looking to insure their domicile. Despite the state’s dryness, rain surges can result in floods due to the prevalence of gullies in the state’s landscape.

New York

Fun fact: The Edgar Allan Poe Cottage in the Bronx was where the author spent the final years of his life.

Average insurance rate: $952 – $1,309

Risk factors: Hurricanes, nor’easters, and flooding

5 Most Popular Companies:

  1. Allstate Corp.
  2. State Farm
  3. Chubb
  4. Travelers Companies Inc.
  5. Liberty Mutual
Company Market Share
Allstate Corp. 8.4%
USAA Insurance Group 6.6%
Farmers Insurance Group of Companies 5.7%
Travelers Companies Inc. 4.1%
Chubb Ltd. 2.9%

Add-ons popular in the state: Flood insurance and scheduled personal property endorsement

Overview

Insurance in New York state is highly dependent on the region. New York City and the Hamptons have some of the most expensive home insurance in the country. On the other hand, areas in upstate New York have far more reasonable rates.

North Carolina

Fun fact: The Biltmore Estate in Asheville is the largest privately owned residence in the United States.

Average insurance rate: $1,086 – $1,118

Risk factors: Hurricanes, floods, and lightning

5 Most Popular Companies:

  1. State Farm
  2. North Carolina Farm Bureau Insurance Group
  3. Nationwide Mutual Group
  4. USAA Insurance Group
  5. Allstate Corp.
Company Market Share
USAA Insurance Group 6.6%
Farmers Insurance Group of Companies 5.7%
Travelers Companies Inc. 4.1%
American Family Insurance Group 3.9%
Chubb Ltd. 2.9%

Add-ons popular in the state: Flood insurance and watercraft endorsement

Overview

Even though its sister state is one of the more expensive places in the country for home insurance, North Carolina is one of the ten cheapest states.

North Dakota

Fun fact: The restored house of General Custer can be found in Fort Abraham Lincoln State Park.

Average insurance rate: $906 – $1,253

Risk factors: Tornadoes and blizzards

5 Most Popular Companies:

  1. State Farm
  2. American Family Insurance Group
  3. Farmers Union Insurance
  4. Nodak Mutual Insurance Co.
  5. Auto-Owners Insurance Co.
Company Market Share
USAA Insurance Group 6.6%
Farmers Insurance Group of Companies 5.7%
Travelers Companies Inc. 4.1%
Nationwide Mutual Group 3.1%
Erie Insurance Group 1.7%

Add-ons popular in the state: Sewer backup endorsement

Overview

The combination of cold weather and the possibility of tornadoes makes North Dakota home insurance more expensive than in other states. This state is one of the ten most expensive in the country.

Ohio

Fun fact: Philo, Ohio, has a house that is made entirely out of garbage, known as the House of Trash.

Average insurance rate: $862 – $895

Risk factors: Tornadoes and flooding

5 Most Popular Companies:

  1. State Farm
  2. Allstate Corp.
  3. Liberty Mutual
  4. Nationwide Mutual Group
  5. Grange Insurance Association
Company Market Share
Allstate Corp. 8.4%
USAA Insurance Group 6.6%
Farmers Insurance Group of Companies 5.7%
Travelers Companies Inc. 4.1%
American Family Insurance Group 3.9%

Add-ons popular in the state: Flood insurance

Overview

Ohio’s tornadoes aren’t serious or prevalent enough to raise their home insurance rates above the national average, as they’re in the bottom 75% of the list.

Oklahoma

Fun fact: Carrie Underwood, one of the better-known American Idol winners, once had a house in Muskogee, Oklahoma.

Average insurance rate: $1,114 – $1,885

Risk factors: Hail, tornadoes, and thunderstorms

5 Most Popular Companies:

  1. State Farm
  2. Farmers Insurance Group
  3. Liberty Mutual
  4. Allstate Corp
  5. USAA Insurance Group
Company Market Share
State Farm Mutual Automobile Insurance 18%
USAA Insurance Group 6.6%
Liberty Mutual 6.5%
Travelers Companies Inc. 4.1%
American Family Insurance Group 3.9%

Add-ons popular in the state: Protective safeguard endorsement

Overview

Oklahoma is part of Tornado Alley, and that alone is enough to put it alongside the most expensive states for home insurance. In some years, Oklahoma is the most expensive state in the country, based on its average rates.

Oregon

Fun fact: Every house in Bickleton, Oregon, is equipped with a birdhouse for Bluebirds.

Average insurance rate: $677 – $950

Risk factors: Earthquakes, wildfires, and landslides

5 Most Popular Companies:

  1. State Farm
  2. Farmers Insurance Group
  3. Liberty Mutual
  4. USAA Insurance Group
  5. Allstate Corp.
Company Market Share
Allstate Corp. 8.4%
Liberty Mutual 6.5%
Farmers Insurance Group of Companies 5.7%
Travelers Companies Inc. 4.1%
American Family Insurance Group 3.9%

Add-ons popular in the state: Earth movement insurance

Overview

Home insurance is rather affordable in Oregon, even though the state is vulnerable to wildfires and earthquakes. Many homeowners in Oregon also invest in earth movement coverage to ensure that their home is covered from earthquake damage.

Pennsylvania

Fun fact: In Hellam, Pennsylvania, there is a house that is shaped like a shoe. This is, incidentally, the world’s largest shoe.

Average insurance rate: $931 – $1,003

Risk factors: Hurricanes, nor’easters, and snowstorms

5 Most Popular Companies:

  1. State Farm
  2. Erie Insurance Group
  3. Allstate Corp.
  4. Liberty Mutual
  5. Nationwide Mutual Group
Company Market Share
Liberty Mutual 6.5%
Farmers Insurance Group of Companies 5.7%
Travelers Companies Inc. 4.1%
Nationwide Mutual Group 3.1%
Chubb Ltd. 2.9%

Add-ons popular in the state: Home-based business and sewer backup endorsements

Overview

East coast hurricanes rarely damage Pennsylvania property, making home insurance in this state some of the most affordable in the country.

Rhode Island

Fun fact: It is a misdemeanor to have more than eleven vehicles parked outside of your house in Rhode Island./p>

Average insurance rate: $982 – $1,551

Risk factors: Hurricanes, snowstorms, flooding

5 Most Popular Companies:

  1. Amica Mutual Insurance Co.
  2. Allstate Corp.
  3. Liberty Mutual
  4. USAA Insurance Group
  5. UPC Insurance
Company Market Share
State Farm Mutual Automobile Insurance 18%
USAA Insurance Group 6.6%
Farmers Insurance Group of Companies 5.7%
American Family Insurance Group 3.9%
Nationwide Mutual Group 3.1%

Add-ons popular in the state: Flood insurance, freezing damage endorsements

Overview

American homeowners in Delaware are used to favorable rates, and in some years, the state is the fiftieth most expensive in the country for home insurance.

South Carolina

Fun fact: Drayton Hall in Charleston, South Carolina, is the oldest preserved plantation house that is open to public visitors.

Average insurance rate: $1,126 – $1,269

Risk factors: Hurricanes, hailstorms, and flooding

5 Most Popular Companies:

  1. State Farm
  2. Allstate Corp.
  3. USAA Insurance Group
  4. Travelers Companies Inc.
  5. Nationwide Mutual Group
Company Market Share
Allstate Corp. 8.4%
USAA Insurance Group 6.6%
Farmers Insurance Group of Companies 5.7%
Travelers Companies Inc. 4.1%
American Family Insurance Group 3.9%

Add-ons popular in the state: Flood insurance and watercraft endorsement

Overview

South Carolina’s vulnerability to Atlantic storms and Charleston’s susceptibility to floods make this state one of the most expensive in the country for homeowners insurance.

South Dakota

Fun fact: Deadwood’s Adams House is a prime example of Victorian architecture and it has been a museum since 1994.

Average insurance rate: $898 – $1,202

Risk factors: Hail and thunderstorms

5 Most Popular Companies:

  1. State Farm
  2. American Family Insurance Group
  3. Farmers Insurance Group
  4. Farmers Mutual Insurance Co. of Nebraska
  5. Auto-Owners Insurance Co.
Company Market Share
USAA Insurance Group 6.6%
Liberty Mutual 6.5%
Farmers Insurance Group of Companies 5.7%
Chubb Ltd. 2.9%
Erie Insurance Group 1.7%

Add-ons popular in the state: Windstorm endorsement

Overview

The main threat to dwellings in South Dakota is hail, with hailstorms being far more common in this state than in most others country-wide.

Tennessee

Fun fact: The Millennium Manor in Alcoa, Tennessee, was built to last for 1000 years.

Average insurance rate: $1,118 – $1,196

Risk factors: Tornadoes, hailstorms, and flooding

5 Most Popular Companies:

  1. State Farm
  2. Tennessee Farmers Mutual Insurance Co.
  3. Allstate Corp.
  4. Liberty Mutual
  5. USAA Insurance Group
Company Market Share
State Farm Mutual Automobile Insurance 18%
Allstate Corp. 8.4s%
Liberty Mutual 6.5%
Farmers Insurance Group of Companies 5.7%
American Family Insurance Group 3.9%

Add-ons popular in the state: Flood insurance

Overview

Tennessee’s insurance rates are slightly more affordable than the national average. Properties near the Tennessee River may be pricier because of the need for flood coverage.

Texas

Fun fact: Texas has two Presidential boyhood homes still standing: Lyndon B. Johnson’s and Dwight D. Eisenhower’s.

Average insurance rate: $1,140 – $1,893

Risk factors: Hurricanes, flooding, wildfires, and tornadoes

5 Most Popular Companies:

  1. State Farm
  2. Allstate Corp.
  3. USAA Insurance Group
  4. Farmers Insurance Group
  5. Liberty Mutual
Company Market Share
State Farm Mutual Automobile Insurance 18%
USAA Insurance Group 6.6%
Liberty Mutual 6.5%
Farmers Insurance Group of Companies 5.7%
American Family Insurance Group 3.9%

Add-ons popular in the state: Flood insurance and watercraft endorsement

Overview

Its proximity to the Gulf of Mexico and the presence of multiple densely-populated cities in Texas make it one of the most expensive places for home insurance in America.

Utah

Fun fact: Salt Lake City features the McCune Mansion, which is one of (if not the most) opulent homes in the state.

Average insurance rate: $692 – $1,025

Risk factors: Earthquakes, landslides, wildfires, and floods.

5 Most Popular Companies:

  1. State Farm
  2. Farmers Insurance Group
  3. Allstate Corp.
  4. Bear River Mutual Insurance Co.
  5. Liberty Mutual
Company Market Share
Liberty Mutual 6.5%
Farmers Insurance Group of Companies 5.7%
Travelers Companies Inc. 4.1%
Nationwide Mutual Group 3.1%
Chubb Ltd. 2.9%

Add-ons popular in the state: Flood insurance and scheduled personal property endorsement

Overview

The majority of Utah’s home insurance rates are much lower than the national average. The only exception to this is Salt Lake City and its suburbs, which feature much higher average home insurance prices.

Vermont

Fun fact: In Manchester, Vermont, you’ll find Hildene, which was the family home of the Lincolns, built by Abraham Lincoln’s son after his death.

Average insurance rate: $918 – $1,004

Risk factors: Severe winter weather and heavy storms

5 Most Popular Companies:

  1. Vermont Mutual Insurance Co.
  2. Liberty Mutual
  3. Patrons Mutual Fire Insurance Co.
  4. State Farm
  5. USAA Insurance Group
Company Market Share
State Farm Mutual Automobile Insurance 18%
Allstate Corp. 8.4%
USAA Insurance Group 6.6%
American Family Insurance Group 3.9%
Nationwide Mutual Group 3.1%

Add-ons popular in the state: Scheduled personal property and sewer backup endorsements

Overview

The lack of threat from natural disasters and the low population density of Vermont reduce the likelihood of claims being filed, lowering the cost of home insurance.

Virginia

Fun fact: Thomas Jefferson’s home, Monticello, is located in Charlottesville, Virginia, and it is the only private home in the US that is designated a World Heritage Site.

Average insurance rate: $999 – $1,181

Risk factors: Hurricanes, flooding, and hail.

5 Most Popular Companies:

  1. USAA Insurance Group
  2. State Farm
  3. Travelers Companies Inc.
  4. Allstate Corp.
  5. Nationwide Mutual Group
Company Market Share
Allstate Corp. 8.4%
USAA Insurance Group 6.6%
Liberty Mutual 6.5%
Travelers Companies Inc. 4.1%
Chubb Ltd. 2.9%

Add-ons popular in the state: Flood insurance and watercraft endorsement

Overview

Virginia’s insurance rates are average due to its combination of urban and rural areas. While the state is in the path of some Atlantic storms, severe hurricanes in Virginia are extremely rare.

Washington

Fun fact: Kurt Cobain, Jimi Hendrix, and Bing Crosby all had homes in Washington state.

Average insurance rate: $854 – $986

Risk factors: Wildfires, earthquakes, volcanoes.

5 Most Popular Companies:

  1. State Farm
  2. Liberty Mutual
  3. Farmers Insurance Group
  4. Allstate Corp.
  5. USAA Insurance Group
Company Market Share
State Farm Mutual Automobile Insurance 18%
Allstate Corp. 8.4%
Liberty Mutual 6.5%
Farmers Insurance Group of Companies 5.7%
American Family Insurance Group 3.9%

Add-ons popular in the state: Earth movement insurance

Overview

Along with Hawaii, Washington is one of the few states where volcanoes pose a threat to property. Aside from this, Washingtonians also have to deal with landslides, wildfires, and earthquakes, so earth movement insurance is a common addition here.

West Virginia

Fun fact: The Coal House in White Sulphur Springs is the only home in the world to be made entirely of coal.

Average insurance rate: $940 – $1,101

Risk factors: Floods and mine subsidence

5 Most Popular Companies:

  1. State Farm
  2. Erie Insurance Group
  3. Nationwide Mutual group
  4. Allstate Corp.
  5. Liberty Mutual
Company Market Share
State Farm Mutual Automobile Insurance 18%
USAA Insurance Group 6.6%
Liberty Mutual 6.5%
Travelers Companies Inc. 4.1%
American Family Insurance Group 3.9%

Add-ons popular in the state: Flood insurance

Overview

For a sparsely-populated state, West Virginia has a surprisingly high average home insurance rate that’s just above the US average.

Wisconsin

Fun fact: The House on the Rock in Spring Green, Wisconsin, features a room that has over 3000 windows in it.

Average insurance rate: $779 – $903

Risk factors: Tornadoes and severe winter weather

5 Most Popular Companies:

  1. American Family Insurance Group
  2. State Farm
  3. Erie Insurance Group
  4. ACUITY
  5. Allstate Corp.
Company Market Share
State Farm Mutual Automobile Insurance 18%
USAA Insurance Group 6.6%
Liberty Mutual 6.5%
American Family Insurance Group 3.9%
Nationwide Mutual Group 3.1%

Add-ons popular in the state: Sewer backup endorsement

Overview

Even though Wisconsin has harsh winter weather, the rate of home insurance claims isn’t quite as high as in the other northern states. This may be due to the state’s lower population density and relative lack of vandalism.

Wyonming

Fun fact: Vice President Dick Cheney grew up in a home in Casper, Wyoming, after moving there from Nebraska.

Average insurance rate: $966 – $1,156

Risk factors: Hail and tornadoes

5 Most Popular Companies:

  1. State Farm
  2. Farmers Insurance Group
  3. Mountain West Farm Bureau Mutual Insurance Co.
  4. Liberty Mutual
  5. USAA Insurance Group
Company Market Share
Allstate Corp. 8.4%
USAA Insurance Group 6.6%
Farmers Insurance Group of Companies 5.7%
American Family Insurance Group 3.9%
Nationwide Mutual Group 3.1%

Add-ons popular in the state: Guaranteed replacement cost endorsement

Overview

Even though Cheyenne has the most frequent hailstorms in America, Wyoming is one of the more affordable states for home insurance, thanks to the state’s small population.

Conclusion

a family running towards their newly bought house

Along with damage to property and belongings, home insurance can help cover owners from costly legal liabilities because of accidents on their property. This is why many American homeowners consider insurance a necessity.

Your state, region, property value, and much more will determine how much you pay for home insurance. Homeowners can either contact their local insurance companies and compare their rates or use a brokerage firm to determine how much they’ll pay for insurance.

Ideally, this guide has provided you with the info required to get the best life insurance policy for your budget and your needs.

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