The average cost of homeowners insurance in the United States has reached $2,543 per year, or $212 per month, for $300,000 in dwelling coverage, according to data released this month by Insurance.com.
This represents a significant financial burden for many American homeowners, and the increase is not uniform across the country. NerdWallet’s analysis of over 100 insurance companies indicates the national average is approximately $2,490 annually for $400,000 of dwelling coverage, but rates fluctuate considerably by state. Bankrate reports a national average of $2,424 per year for a policy with a $300,000 dwelling limit.
The disparity in averages highlights the complexity of determining insurance costs. Factors such as location, the size of the house, and the amount of coverage needed all play a role. According to NerdWallet, Oklahoma, Nebraska, and Kansas are currently the most expensive states for home insurance, while Hawaii, Vermont, and Delaware offer the least expensive rates.
Competition among insurers similarly impacts premiums. State Farm currently offers the lowest average annual rate among large home insurance companies at $2,415, while American Family is the most expensive, averaging $4,235 per year. Military insurer USAA provides even more affordable policies, averaging $1,940 annually, but is limited to military families.
MarketWatch’s analysis, based on data gathered from Quadrant Information Services, involved the review of 35 nationwide providers and the collection of 5 million estimates. The firm’s methodology considered variables such as credit scores, the age of the home, and claim types to generate accurate estimates.
ValuePenguin’s data indicates a slightly lower national average of $2,151 per year, or $179 per month, further illustrating the range of costs homeowners may encounter. The differing figures underscore the importance of obtaining multiple quotes to secure the best possible rate.
The rising cost of homeowners insurance is prompting increased scrutiny of the industry and its pricing practices. No immediate legislative action has been announced to address the issue, and major insurance trade groups have not yet issued statements regarding the recent increases.
