Our experts answer readers’ insurance questions and write unbiased product reviews (here’s how we assess insurance products). In some cases, we receive a commission from our partners; however, our opinions are our own.
The average homeowners insurance premium in the United States is $1,428 a year.
Your home’s value, location, and coverage amount all impact your price.
Many important coverage riders are just a few dollars per month to add on
Unlike with physical objects like a refrigerator or a car, it can be difficult to pinpoint the cost of homeowners insurance. Apart from asking all your friends, family, and neighbors what they pay in premiums, it’s hard to know if the quote you’ve received is outrageous or a steal.
Fortunately, there’s a lot of data available to help you set realistic expectations for your homeowners insurance cost. This article will examine how much the average homeowner is paying in homeowners insurance premiums, the factors that affect your specific policy, and how you can save.
The average cost of homeowners insurance
The average annual premium in the United States in 2019 was $1,272, according to the most recent data from the Insurance Information Institute.
But, each home’s costs for insurance vary widely based on various factors, including your home’s value.
Here’s how much homeowners insurance costs for a standard all-perils homeowners insurance policy for a single-family residence on average by home value in the United States, according to the most recent release of the Homeowners Insurance Report by the National Association of Insurance Commissioners (NAIC):
Estimated Home Value
Average annual premiums for an HO3 Policy
$49,999 and under
N/A
$50,000 to $74,999
$737
$75,000 to $99,999
$831
$100,000 to $124,999
$890
$125,000 to $149,999
$944
$150,000 to $174,999
$990
$175,000 to $199,999
$1,031
$200,000 to $299,999
$1,132
$300,000 to $399,999
$1,290
$400,000 to $499,999
$1,502
$500,000 and above
$2,181
*The above table uses data from the NAIC Homeowners Report. Prices may vary for condos, townhouses, and other non-single-family residences.
The average cost of homeowners insurance by state
Where you live will also impact your cost of homeowners insurance. If you live in an area with high real estate values, this also means that it would cost more to replace your home if it were destroyed. So the NAIC says that average premiums tend to be higher in densely populated areas.
Second, your potential exposure to catastrophe plays a significant role in what you pay for homeowner’s insurance. If you live in an area prone to floods, earthquakes, or tornadoes, you …read more
Source:: Business Insider