Where Home Insurance is Easier on Your Wallet
As homeowners in states like California and Florida face escalating home insurance rates fueled by wildfires and hurricanes, there’s a silver lining for residents in other parts of the country. According to a recent Bankrate report, some states offer significantly lower premiums, providing welcome relief for budget-conscious homeowners.
The national average home insurance premium hit $2,242 annually in March, covering dwelling coverage of $300,000. However, the following 10 states boast rates that are $1,000 or more below that average for the same coverage.
It’s important to note that these lower rates typically apply to standard home insurance policies. While these policies provide essential coverage, they don’t cover every potential risk. Homeowners may need to consider additional coverage to fully protect against all threats.
Let’s explore the states where homeowners are paying the least for home insurance in 2024, along with the specific reasons rates are lower in these locations:
10 States with the Cheapest Home Insurance
While the national average is $2,242 per year, homeowners in these 10 states are enjoying significantly lower rates.
- Wisconsin
Homeowners in Wisconsin pay an average of $1,230 per year for home insurance. One of the factors contributing to these lower costs is Wisconsin’s relative lack of exposure to major natural disasters like hurricanes and wildfires. The most common risks are related to harsh winters.
- Hawaii
The average annual home insurance premium in Hawaii is just $1,224. It’s important for potential residents to consider that standard policies in Hawaii exclude wind-related damage, a crucial consideration given the state’s vulnerability to hurricanes. Homeowners must purchase supplemental hurricane insurance in addition to flood insurance to be fully protected against storm damage.
- New Jersey
In New Jersey, homeowners have an average annual insurance cost of $1,194 for a standard home insurance policy. However, standard policies typically do not cover flood damage. Since the state is at high risk of flooding, it’s essential to buy flood insurance to fully protect homes.
- Nevada
Nevada homeowners enjoy an average annual home insurance premium of $1,079. The state faces minimal risk from hurricanes and severe storms. The biggest weather-related concern for residents is extreme summer heat.
- New Hampshire
New Hampshire residents can anticipate paying an average of $1,033 per year for standard home insurance. Like Wisconsin, New Hampshire’s biggest risks typically relate to snow and freezing during the winters. Homeowners should thus ensure their pipes are insulated and be ready to provide proof of their cold weather prep to ease the insurance claim process.
- Oregon
Oregon homeowners have a low cost as well with average annual home insurance premiums of about $1,016. Though it’s one of the safer states, the risk of wildfires has been increasing. Homeowners — especially those close to the southern border — should take steps now to make their homes more fire ready, and those on the west coast might want to consider buying earthquake insurance.
- West Virginia
The average home insurance premium in West Virginia is around $1,009 per year. However, like New Jersey, owners should remember that most standard home insurance policies do not include flood insurance. As that state faces an above-average risk of flooding, especially during hurricane season, it is important to buy extra coverage for flood damage.
- Delaware
Delaware’s homeowners only pay about $964 per year, but the state’s residents must protect themselves by purchasing flood insurance. All of Delaware is in a high risk of flooding.
- Alaska
Alaskan homeowners can find home insurance for an average of $942 each year. Winter weather-related damage is usually covered by standard home insurance, but homeowners are still responsible for taking precautions to prevent damage.
- Vermont
Vermont takes first place for the cheapest home insurance, with an average cost of $837 per year! That is $1,405 less than the national average. The low rates are the result of the state being among the safest in the country. However, some parts of the state face a high risk of flooding, so owners should double-check FEMA flood maps to see if they are in a high-risk zone.
The Bottom Line
Home insurance is a critical financial protection, even though premiums are increasing across the country. Smart homeowners regularly shop around for the best rates and coverage. Be sure to review your coverage to make sure you are getting what you need for the best price. Remember to factor in the need for additional coverage depending on your location’s risk factors. Consider flood or earthquake insurance, depending on the prevailing risks in your area.
