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5 States with Affordable Homeowners Insurance

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It’s common to find people relocating from one part of the country to the other these days. Many people do it as they change jobs or as a result of personal or family needs. If you’re planning to relocate, there are various factors you ought to consider first before deciding on your new place of residence.

Top on the list of factors that many people consider when moving is real estate value. What many prospective homeowners don’t stop to think about is the cost of homeowners insurance. The cost of homeowners insurance adds up to the total cost of maintaining your home, so it’s in your best interest to make sure the area you’re moving to doesn’t have any bizarre homeowners association requirements pertaining to homeowners insurance and the like.

There’s always the option of comparing homeowners insurance quotes online to land the best deals in insurance premium rates. The actual cost of your insurance premium will depend on a number of factors including deductibles, the coverage you choose and the cost of the property you wish to insure. The location also plays an important role in the cost of insurance.

The National Association of Insurance Commissioners determined the average cost of homeowners insurance across the U.S. to have been $1,086 in 2013. This was a six percent increase from the average rate in 2012. According to Investopedia, the cost of homeowners insurance claims has been rising since 1997. As a result, insurance rates have risen by more than 50 percent in 10 years. If you want to control the cost of your insurance premiums, consider the location you’re relocating to carefully.

The following are five states with the lowest rates for homeowners insurance premiums.

Idaho ($533)

Idaho tops the list as the least expensive state for homeowners insurance with insurance premiums averaging $533 annually. This is slightly over half the national average. The state is popular amongst prospective home buyers and has experienced significant appreciation in home prices over the years. With low burglary rates of 12.7 percent, the state is considered quite safe.

Oregon ($558)

Oregon came in a close second with an average rate of $558. The average burglary rate in the state is also quite low. However, the average price per square foot for houses in the state is higher than that of Idaho, causing insurance companies to charge higher premiums.

Utah ($574)

Utah is one of the most affordable places to purchase a home in the U.S. It is also one of the most affordable states to live in. Low crime rates and high employment rates all contribute to lower insurance premiums offered in this state.

Washington ($639)

It may seem surprising to many people to hear that Washington ranks amongst the cheapest states for homeowners insurance. One would expect the high price per square foot of homes as well as the higher crime rates to increase the insurance premium rates. However, high competition amongst insurance companies also plays a role in the cost of insurance in this state.

Wisconsin ($655)

This state comes in fifth with an average insurance rate of $655. This may be attributed to low burglary rates as well as low-price per square foot for homes in the region.

Take Control of Your Expenses

You can easily control the cost of your homeowner’s insurance premiums by deciding to relocate to an area with a low average rate. However, if you don’t have control over where you relocate to, you may want to consider the following:

  • Increasing security of your home to lower insurance premiums. Invest in burglar and other security systems to keep your home safe.
  • Increase your deductible to lower your premiums. This will, however, result in a greater out-of-pocket expense when you make a claim.
  • Avoid filing claims. The more claims you file, the higher your insurance premiums.

There are various insurance providers in the market. Always compare insurance quotes from different insurance providers to ensure that you get the best deal.

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4 Comments

  • Reply amy |

    Isn’t affordable kind of relative to cost of living, not just a number? Perhaps we need another blogger so that we dont get these posts?

  • Reply Susan Melvin |

    I don’t like these posts, either. If I want to read general financial articles, there are lots of places to go online. I read Blogging Away Debt because of Ashley (and sometimes Hope).

So, what do you think ?