Homeowners insurance is a crucial aspect of protecting your most valuable asset — your home. However, the cost of insuring your home has been on the rise nationwide. According to data from the Bureau of Labor Statistics, the national producer price index for homeowners insurance premiums has increased by 11.5% since 2022. This means that the average cost of homeowners insurance in the U.S. is now $2,728 per year or $227 per month.
To help you understand the new normal for homeowners insurance rates in 2024, the MarketWatch Guides team has compiled a comprehensive guide on average homeowners insurance costs. We have analyzed data from Quadrant Information Services, which includes ZIP-code-level quotes across five consumer profiles, totaling over 4.7 million quotes. This detailed analysis allows us to provide average rates down to the city level, helping you make informed decisions when purchasing insurance.
The cost of homeowners insurance can vary significantly by state due to local risk factors. For example, states like Nebraska, Louisiana, and Oklahoma have higher premiums due to the risk of severe weather events, while states like Hawaii, Utah, and Delaware have more affordable rates. The average annual premiums range from $782 to $6,325 depending on the state you reside in.
In addition to location, the provider and coverage limits you choose can also impact your homeowners insurance rates. Dwelling coverage, which determines the amount your provider will pay to repair your property after a covered loss, plays a significant role in determining your premiums. We have listed cost estimates from some of the top homeowners insurance providers for dwellings of different values to help you compare prices.
Several factors can impact your home insurance rates, including your claims history, credit score, dwelling age, and insurance deductible. Filing a claim for a covered loss can increase your rates at renewal, while having a good credit score can help lower your premiums. Older homes are considered higher risk by insurers, leading to higher premiums, and choosing a higher insurance deductible can reduce your monthly costs.
The rise in home insurance rates can be attributed to factors such as significant natural disasters, increasing construction costs, and insurers pulling out of high-risk states. To save money on homeowners insurance, consider bundling policies, looking for discounts, making renovations to your home, maintaining a good credit score, avoiding small claims, and comparing providers.
In conclusion, while homeowners insurance premiums have been increasing, there are ways to save money and find the best rates for your home. By understanding the factors that impact your insurance costs and following our tips for saving money, you can protect your home without breaking the bank. Remember to shop around and compare quotes from multiple providers to find the most affordable coverage for your needs.