Key Takeaways
| Topic | Key Points |
|---|---|
| Average Home Insurance Cost | Ranges from $1,800 to $3,200 per year. |
| National Average Cost | Around $2,600 annually. |
| Cost Variation by State | Significant variations depending on the state. |
| Cost by Company | Varies considerably across different insurance providers. |
| Coverage Types | Detailed overview of what each type of coverage includes. |
| How to Save | Practical tips to lower your home insurance cost. |
How Much Does Homeowners Insurance Cost?
Home insurance cost can vary significantly based on multiple factors including location, the value of the home, and the insurance provider. Home insurance, also known as homeowner’s insurance, is a necessity for protecting your property against potential risks such as fire, theft, and natural disasters.
Average Cost Per Year
The average cost of homeowners insurance falls between $1,800 and $3,200 annually. It’s important to understand that this is a broad range and the actual cost can fluctuate based on specific circumstances.
Average Home Insurance Cost
To give a clearer picture, let’s delve into the average cost statistics:
| National Average Cost | $2,600 |
|---|---|
| Minimum Cost | $540 |
| Maximum Cost | $6,640 |
| Average Range | $1,800 to $3,200 |
Home Insurance Costs in Canada
Home insurance costs can vary dramatically depending on the province. Here’s a detailed breakdown for the home insurance costs across all of Canada’s provinces and territories:
| Province/Territory | Average Annual Cost | Coverage Highlights |
|---|---|---|
| Alberta | $900 | Fire, theft, liability, water damage, additional living expenses |
| British Columbia | $1,200 | Earthquake, fire, theft, liability, water damage, additional living expenses |
| Manitoba | $850 | Fire, theft, liability, water damage, additional living expenses |
| New Brunswick | $700 | Fire, theft, liability, water damage, additional living expenses |
| Newfoundland and Labrador | $800 | Fire, theft, liability, water damage, additional living expenses |
| Northwest Territories | $1,000 | Fire, theft, liability, water damage, additional living expenses |
| Nova Scotia | $850 | Fire, theft, liability, water damage, additional living expenses |
| Nunavut | $1,100 | Fire, theft, liability, water damage, additional living expenses |
| Ontario | $1,250 | Fire, theft, liability, water damage, additional living expenses |
| Prince Edward Island | $750 | Fire, theft, liability, water damage, additional living expenses |
| Quebec | $950 | Fire, theft, liability, water damage, additional living expenses |
| Saskatchewan | $1,000 | Fire, theft, liability, water damage, additional living expenses |
| Yukon | $900 | Fire, theft, liability, water damage, additional living expenses |
This table provides a quick overview of the average annual home insurance costs and common coverage highlights for each province and territory in Canada.
Homeowners Insurance Cost By Company
This table provides an overview of the average annual homeowners insurance costs and common coverage highlights for various insurance companies in Canada.
| Insurance Company | Average Annual Cost | Coverage Highlights |
|---|---|---|
| Intact Insurance | $1,050 | Fire, theft, liability, water damage, additional living expenses, home repair |
| TD Insurance | $1,100 | Fire, theft, liability, water damage, additional living expenses, identity theft |
| RBC Insurance | $1,150 | Fire, theft, liability, water damage, additional living expenses, home repair |
| Aviva Canada | $1,200 | Fire, theft, liability, water damage, additional living expenses, earthquake |
| Desjardins Insurance | $1,000 | Fire, theft, liability, water damage, additional living expenses, home repair |
| Allstate Canada | $1,100 | Fire, theft, liability, water damage, additional living expenses, home repair |
| The Co-operators | $1,050 | Fire, theft, liability, water damage, additional living expenses, identity theft |
| Economical Insurance | $1,100 | Fire, theft, liability, water damage, additional living expenses, home repair |
| Wawanesa Insurance | $1,000 | Fire, theft, liability, water damage, additional living expenses, home repair |
| CAA Insurance | $950 | Fire, theft, liability, water damage, additional living expenses, identity theft |
Home Insurance Costs By State
Home insurance costs can vary dramatically depending on the state. Here’s a detailed breakdown:
| State | Average Annual Rate | Average Monthly Rate |
|---|---|---|
| Alabama | $2,020 – $3,485 | $173 – $300 |
| Alaska | $1,015 – $2,130 | $90 – $188 |
| Arizona | $1,470 – $2,220 | $128 – $195 |
| Arkansas | $1,530 – $4,200 | $133 – $360 |
| California | $1,195 – $1,835 | $105 – $163 |
| Colorado | $2,460 – $3,670 | $210 – $316 |
| Connecticut | $1,330 – $2,375 | $116 – $208 |
| Delaware | $760 – $1,555 | $68 – $140 |
| District of Columbia | $995 – $1,520 | $88 – $137 |
| Florida | $1,965 – $4,200 | $169 – $360 |
| Georgia | $1,315 – $3,020 | $115 – $262 |
| Hawaii | $405 – $985 | $39 – $92 |
| Idaho | $1,010 – $2,450 | $89 – $214 |
| Illinois | $1,635 – $2,750 | $141 – $239 |
| Indiana | $1,500 – $3,095 | $130 – $268 |
| Iowa | $1,165 – $3,015 | $102 – $261 |
| Kansas | $2,265 – $4,935 | $194 – $421 |
| Kentucky | $1,570 – $3,700 | $136 – $318 |
| Louisiana | $2,055 – $4,475 | $176 – $383 |
| Maine | $895 – $1,755 | $80 – $156 |
| Maryland | $1,300 – $1,890 | $113 – $168 |
| Massachusetts | $1,260 – $2,270 | $110 – $199 |
| Michigan | $1,220 – $2,605 | $107 – $227 |
| Minnesota | $1,685 – $2,930 | $145 – $254 |
| Mississippi | $1,255 – $3,925 | $110 – $337 |
| Missouri | $1,490 – $3,835 | $129 – $330 |
| Montana | $1,820 – $2,715 | $157 – $236 |
| Nebraska | $2,550 – $4,890 | $218 – $418 |
| Nevada | $935 – $1,790 | $83 – $159 |
| New Hampshire | $800 – $1,550 | $72 – $139 |
| New Jersey | $915 – $1,555 | $81 – $140 |
| New Mexico | $1,335 – $2,925 | $116 – $254 |
| New York | $1,340 – $2,570 | $117 – $224 |
| North Carolina | $1,425 – $3,235 | $124 – $280 |
| North Dakota | $1,475 – $3,135 | $128 – $271 |
| Ohio | $1,140 – $2,265 | $100 – $199 |
| Oklahoma | $2,275 – $5,835 | $195 – $496 |
| Oregon | $950 – $2,195 | $84 – $193 |
| Pennsylvania | $735 – $2,195 | $66 – $193 |
| Rhode Island | $1,250 – $1,875 | $109 – $166 |
| South Carolina | $1,205 – $3,040 | $105 – $263 |
| South Dakota | $1,740 – $3,840 | $150 – $330 |
| Tennessee | $1,970 – $3,105 | $169 – $269 |
| Texas | $2,130 – $4,850 | $183 – $414 |
| Utah | $865 – $1,755 | $77 – $156 |
| Vermont | $680 – $1,540 | $62 – $138 |
| Virginia | $1,150 – $2,245 | $101 – $197 |
| Washington | $1,155 – $1,655 | $101 – $148 |
| West Virginia | $915 – $2,535 | $81 – $221 |
| Wisconsin | $845 – $2,025 | $75 – $179 |
| Wyoming | $1,040 – $2,435 | $92 – $213 |
States With The Cheapest Home Insurance:
- Hawaii ($405 – $985)
- Delaware ($760 – $1,555)
- Nevada ($935 – $1,790)
States With The Most Expensive Home Insurance:
- Oklahoma ($2,275 – $5,835)
- Nebraska ($2,550 – $4,890)
- Kansas ($2,265 – $4,935)
Homeowners can find significant savings or higher costs depending on the region. Natural disasters, state regulations, and local crime rates can heavily influence premiums.
Homeowners Insurance Cost By Company
The cost of homeowners insurance varies among providers. Here’s a comparison of average annual costs by company:
| Company | Average Annual Insurance Rate |
|---|---|
| Allstate | $1,600 – $2,200 |
| American Family | $1,500 – $2,500 |
| Auto-owners | $1,400 – $2,000 |
| Chubb | $1,875 – $2,700 |
| Erie | $1,500 – $2,200 |
| Farmers | $2,000 – $2,800 |
| Nationwide | $1,500 – $3,000 |
| Progressive | $3,200 – $4,200 |
| State Farm | $1,450 – $2,200 |
| Travelers | $1,575 – $2,100 |
| USAA | $1,075 – $2,200 |
What Does Home Insurance Cover?
Homeowners insurance provides various coverages which protect different parts of your home and property. Here are the primary types:
| Coverage Type | Typical Coverage Limit | What It Covers |
|---|---|---|
| A – Dwelling | $100,000 – $500,000 | Repairs to the home’s physical structure and attached structures. |
| B – Other Structures | 10% – 20% of dwelling limit | Repairs to detached structures like sheds and garages. |
| C – Personal Property | 50% – 75% of dwelling limit | Home contents such as furniture, electronics, and jewelry. |
| D – Loss of Use | 10% – 30% of dwelling limit | Additional living expenses if the home is uninhabitable. |
| E – Personal Liability | $100,000 minimum | Legal expenses for injury or property damage claims by others. |
| F – Medical Payments | $1,000 – $5,000 | Medical bills for guests hurt on your property. |
What Isn’t Covered By Homeowners Insurance?
Standard home insurance policies usually do not cover:
- Flood damage
- Earthquake damage
- Regular wear and tear
- Mold (in some cases)
- Pest infestations
Home Insurance Cost Estimator
Several factors influence the cost of homeowners insurance, including policy type, coverage limits, reimbursement method, deductible, and optional coverage.
Policy Type
Different policies offer varying levels of coverage. It’s crucial to choose a policy type that suits your needs.
Coverage Limits
The cost of home insurance can considerably change based on coverage limits:
| Dwelling Coverage Limit | Average Annual Cost |
|---|---|
| $150,000 | $900 – $1,200 |
| $250,000 | $1,700 – $2,200 |
| $350,000 | $2,300 – $2,900 |
| $450,000 | $2,700 – $3,500 |
| $750,000 | $4,400 – $5,400 |
Reimbursement Method
Insurance policies offer various reimbursement methods such as Actual Cash Value (ACV), Replacement Cost, and Guaranteed Replacement Cost. The chosen method impacts premiums.
Deductible
A higher deductible usually translates to lower premiums and vice versa. It’s essential to balance affordability and out-of-pocket expenses.
Optional Coverage
Optional coverages like high-value items riders or additional liability protection can influence insurance costs.
How To Save On The Cost Of Home Insurance
Several strategies can help reduce home insurance premiums:
- Increase Your Deductible: Higher deductibles usually mean lower premiums.
- Bundle Policies: Combine home and auto insurance to get discounts.
- Install Security Systems: Safeguarding your home can lower costs.
- Maintain Good Credit: Insurance companies consider your credit score.
- Shop Around: Compare quotes from different insurers.
Home Insurance FAQs
Does Homeowners Insurance Cover Mold?
In some cases, standard policies may cover mold if it’s caused by a covered peril like a burst pipe. However, mold from neglected maintenance is typically not covered.
Is Home Insurance Tax-Deductible?
Generally, home insurance premiums are not tax-deductible for homeowners. Certain exceptions apply for rental properties or home offices.
How Much Home Insurance Do I Need?
The amount of insurance you need depends on the cost of rebuilding your home, replacing your belongings, and liability protection.
Who Has The Cheapest Home Insurance?
Hawaii generally offers the cheapest home insurance rates compared to other states.
Why Did My Home Insurance Go Up?
Reasons for premium increases include higher construction costs, changes in the local crime rate, or previous claims.
Getting Home Insurance Cost Estimates
When seeking estimates, ask these important questions:
Questions To Ask A Homeowners Insurance Agent
- What does the policy cover and exclude?
- Are there any discounts available?
- How is the dwelling replacement cost determined?
- What are my deductible options?
- Is the coverage sufficient for my home and belongings?
By understanding these elements, you can make an informed decision about homeowners insurance that best suits your needs and budget.
