row of townhouses

What States Have the Lowest Homeowners Insurance Rates?

Homeowners insurance in Oregon only costs $48 per month and $574 per year on average for this year. The annual rates are so cheap that it’s 47% lower than the nationwide average, which costs $1,083.

An analysis listed the state as the most affordable place for homeowners insurance. Florida ranked as the most expensive state where average premiums cost $171 per month and $2,055 per year. If you live in North Carolina, the average homeowners insurance in Raleigh can cost $88 per month and $1,056 per year. The state ranks as the 29th cheapest place based on the cost of premiums.

The Top 5 Cheapest States

Idaho ranked behind Oregon as the second-best state for homeowners insurance. Monthly premiums only cost $49, while annual rates cost $590. In Utah, residents pay an average of $53 per month and $634 per year, while those in Wisconsin spend $57 and $686 on average for the same payment scheme. Washington State completed the top five as residents pay $58 and $695 for their annual and monthly insurance premiums, respectively.

The main reason for the affordable premiums involves the small likelihood of natural disasters in these states, as opposed to high-risk places such as Florida and Texas. According to the Insurance Services Office, property damage accounted for 97% of homeowners insurance losses. Wind and hail represented more than 30% and hence took the leading share of total losses.

The Top 5 Most Expensive

Florida and Texas ranked as the two most expensive places for homeowners insurance in the country, due to the frequency of natural disasters in these states. Insurance premiums in Texas cost $1,947 per year and $162 per month on average. Louisiana’s median yearly premium costs $1,847, while average monthly rates cost $154.

Oklahoma ranked next with $1,772 in average yearly premiums and $148 in monthly average rates. Those who live in Mississippi pay the fifth-most expensive premiums costing $121 per month and $1,447 per year. Residents in the five states typically spend almost 70% more than the average U.S. homeowner.

Lowering Insurance Premiums

person signing a home insurance

While you can’t control the consistent increase in insurance premiums, there are ways to reduce your actual expenses. Take a higher deductible as an example. You can save as much as 25% on your premiums if you decide to raise your current deductible of $50 to at least $500.

If that’s not possible, you can combine your vehicle and homeowners insurance policies by getting them from the same insurance company. Some providers can offer between 5% and 15% in discounts when you choose a bunded option.

The U.S. average for homeowners insurance rates have increased by nearly 50% in the last decade, so it’s more important than ever to shop around for rates from as many insurers as possible. Choose an insurance company that not only specializes in homeowners insurance. Some scenarios might only be covered under auto and life policies, so consulting a company with varied choices lets you have more options and ultimately make a better decision.

Share this on
Scroll to Top