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What Are the Average House Insurance Rates and How Can You Save Money?


For most of us, our home is the most expensive thing we own. Not only is the structure expensive, but all of your belongings are also inside. This makes home insurance one of the most important types of insurance to have.

Depending on where you are in the country, there is a large range of average home insurance rates. Places where there are natural disasters, such as hurricanes or tornadoes (think Florida and Oklahoma), expect to pay more for insurance.

To learn more about average house insurance rates and how you can save money, read on.

Average House Insurance Rates for Single-Family Homes

On average, home insurance in the US costs $2,305. It is most expensive in Oklahoma, where the average rate is $4,445 annually and cheapest in Hawaii, where homeowners only pay an average of $499 per year.

Things that go into the premium price include:

  • city and state your home is located in
  • proximity to closest fire hydrant and fire department
  • age of the house
  • proximity to the nearest coastline
  • condition of the roof
  • quality of construction
  • past insurance claims
  • natural disaster risk (tornadoes, floods, earthquakes)
  • special features of the home (security system, fire alarms, and sprinklers, etc.)

Your premium can also increase based on your personal property inside. If you have jewelry, antiques, or other heirlooms, you may have to have a separate insurance rider that insures these items.

How to Save on Home Insurance

No one wants to pay more for something than they have to and home insurance is no exception. Luckily, there are ways to save on your home insurance.

Raise Your Deductible

The deductible is how much you will pay if you file an insurance claim. You pay this amount and then the insurance company pays the rest of your claim. Raising your deductible can result in a substantial reduction in your policy premium.

The caveat is that you need to make sure you have enough money to cover the deductible should something happen.

Make Your Home Safer

Installing a security system, deadbolt doors, hurricane-proof windows and doors, and a fire alarm that connects directly to the fire department can all reduce your premium. Before spending a ton of money, check with your insurance company to see if these upgrades will save you money.

Bundle Your Policies

If you have auto insurance, boat insurance, RV insurance, or insure something else, you can typically bundle both of your policies. Having multiple policies with the same company will often save you money.

Improve Your Credit Score

Insurance companies may use your credit score to predict the likelihood of future claims. If your score is lower, they may charge you more. Improving your credit score not only benefits you when getting loans but it can also help save you money on your insurance premiums as well.

Shop Around

Don’t just accept the first quote you get. Shop around to different companies and compare their quotes (just make sure you are comparing the same coverage at each company). You can change companies at any time, so don’t be afraid to see what else is out there.

Don’t Underinsure Your Home

Before buying your home, do a little research to learn about the average house insurance rates in your area. If you live in a high-cost area, make sure you consider that when purchasing your home and think about improvements that you can do to reduce your premium costs.

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