Revealed – Essentially the most and least costly US states for dwelling insurance coverage

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However, tariffs and coverage considerations can vary significantly depending on the location of the home. The reason for this is that different states have different levels of risk, which often dictate the cost of an insurance policy.

To find out which states have the most expensive and cheapest home insurance premiums, financial services firm Bankrate has collected and analyzed 2021 rates for all zip codes and airlines in all 50 states and in Washington DC on 40-year-old homeowners with clean claims history and good credit ratings.

Based on data from Bankrate, the nationwide average price for home insurance for this type of coverage is $ 1,312 per year. The prices can be significantly higher or lower depending on the state. Here are the states where premiums cost the most and the least, according to the financial services company’s analysis.

Continue reading: Top 10 US Home Insurers for Customer Satisfaction

The most expensive countries for home insurance

1. Oklahoma

Average Annual Premium: $ 3,519
Percentage of median household income spent: 5.92%
Percentage above the national average: 168%

Oklahoma is located on Tornado Alley in the Midwest and is prone to tornadoes and high winds. Many houses there are also exposed to summer storms, and there is also a risk of widespread flooding in the east of the state. These are one of the reasons homeowners pay the highest premiums in the country there. Average annual insurance rates are particularly high in Oklahoma City at $ 4,239, while Tulsa is below the national average at $ 3,123.

2. Nebraska

Average annual premium: $ 2,816
Percentage of median household income spent: 3.85%
Percentage above the national average: 115%

Nebraska is another state on Tornado Alley. It is also among the most vulnerable to hail storms, which can cause serious property damage. Storms in the state can bring damaging winds and floods, especially in summer. Major cities of Omaha and Lincoln have premiums that are below the state averages at $ 2,766 and $ 2,060 per year, respectively.

3. Kansas

Average Annual Premium: $ 2,694
Percent of median household income spent: 3.68%
Percentage above the national average: 105%

Kansas’s location in the Great Plains makes it extremely prone to blizzards, tornadoes, and hailstorms. This is the reason why the average cost of home insurance there is more than twice as high as the national average. Annual awards in the city of Wichita are some of the most expensive in the state at $ 2,878.

4. Arkansas

Average annual premium: $ 2,142
Percent of median household income spent: 3.93%
Percentage above the national average: 63%

Arkansas’ proximity to the New Madrid seismic zone makes it prone to earthquakes. Several areas in the state are also prone to flooding. Arkansas is on the path of many tornadoes and experiences an average of 33 per year. This makes wind damage one of the most common insurance claims its residents make.

5. New Mexico

Average annual premium: $ 2,024
Percent of median household income spent: 3.81%
Percentage above the national average: 54%

Flash floods are a major concern for homeowners in New Mexico due to the dry climate. Many parts of the state are also exposed to an increased risk of earthquakes. Tornadoes also occur, but the risk is not as high as in the Midwest. For those who live in the largest city in the state of Albuquerque, though, there is good news – annual premiums are well below the national average at $ 1,513.

6. South Dakota

Average Annual Premium: $ 1,917
Percent of median household income spent: 2.98%
Percentage above the national average: 46%

South Dakota is often viewed as a land of extremes because of its hot, humid summers and extremely cold winters. Summers can bring high winds and tornadoes, while winters can freeze and damage water pipes. Some areas are also prone to forest fires such as the Black Hills and Badlands.

7. Texas

Average Annual Premium: $ 1,863
Percent of median household income spent: 2.76%
Percentage above the national average: 42%

Last year, Texas recorded 105 tornadoes and 6,713 forest fires, both of which were the second highest in the country. During the reporting period, hail damage also hit 1.5 million properties in the state, accounting for nearly a quarter of the total damage in the U.S. and causing a total of $ 14.2 billion in total damage, according to the Rocky Mountain Insurance Information Association. Home insurance rates in the cities of Houston and Dallas are $ 3,183 and $ 3,107, respectively, which is about 70% above the national average.

8. North Dakota

Average annual premium: $ 1,841
Percent of median household income spent: 2.63%
Percentage above the national average: 40%

North Dakota has some of the harshest winters in the country, averaging around 50 freezing days per year, causing pipes to freeze and burst. There is also an above-average flood risk in some eastern parts of the country.

9. Kentucky

Average annual premium: $ 1,839
Percent of median household income spent: 3.30%
Percentage above the national average: 40%

Kentucky is along the path of many hurricanes and tornadoes. In addition, there is an above-average risk of flooding. However, Lexington and Louisville homeowners can expect to find $ 1,381 and $ 1,381, respectively.

10. Montana

Average annual premium: $ 1,826
Percent of median household income spent: 3.03%
Percentage above the national average: 39%

Scenic Montana recorded more than 2,400 forest fires last year, the fourth highest in the country. These fires burned nearly 3,700 acres of landlines. In addition, the western part of the state is seismically active and therefore earthquake prone.

Continue reading: Storms caused 39% of all household insurance claims in 2020 – report

The cheapest states for home insurance

1. Hawaii

Average annual premium: $ 376
Percent of median household income spent: 0.43%
Percentage below the national average: 71%

Hawaii is relatively safe from the effects of many natural disasters that are common in the US mainland, including tornadoes, hailstorms, and blizzards. This makes home insurance in the state the cheapest in the nation. However, homeowners there are still wary of earthquakes, forest fires, and floods, which are the most common causes of property damage. Annual home insurance rates in the city of Honolulu are $ 372, slightly below the national average.

2. Utah

Average annual premium: $ 647
Percent of median household income spent: 0.77%
Percentage below the national average: 51%

Utah is another state that is relatively protected from many natural disasters. Floods are worrying, but especially in the southern regions. The state also experiences extreme heat in summer and heavy snowstorms in winter.

3. Delaware

Average annual premium: $ 680
Percent of median household income spent: 0.92%
Percentage below the national average: 48%

Despite an increased risk of flooding, Delaware still offers annual home insurance rates that are nearly 50% cheaper than the national average. The state is also vulnerable to hurricanes, which are among the leading causes of local residents’ insurance claims.

4. Vermont

Average annual premium: $ 686
Percent of median household income spent: 0.92%
Percentage below the national average: 48%

Much of Vermont is made up of natural wooded land. The state has a moderate risk of forest fires, recording 96 fires and a moderate to high risk of flooding in the past year. Vermont’s emergency preparedness is among the best in the country, making it one of the best protected states from natural disasters.

5. Oregon

Average annual premium: $ 712
Percent of median household income spent: 0.96%
Percentage below the national average: 46%

While it offers one of the cheapest annual average home insurance premiums, Oregon is not without its risks. The state recorded more than 2,200 forest fires in 2020 that burned more than 1.1 million acres of land. Its western part is also prone to earthquakes. Portland has one of the lowest insurance plans in the state at $ 657 per year. At the other end of the spectrum is Eugene, whose annual premiums averaged more than double the state average of $ 1,433.

6. New Hampshire

Average annual premium: $ 724
Percentage of median household income spent: 0.83%
Percentage below the national average: 45%

Like other states in the Atlantic, New Hampshire is prone to hurricanes. But the state’s location and topography mean that hurricanes lose intensity as they move north, protecting most of New Hampshire from danger. However, flooding is a major problem for homeowners.

7. Pennsylvania

Average annual premium: $ 730
Percent of median household income spent: 1.03%
Percentage below the national average: 44%

Pennsylvania is another state that is prone to flooding. However, the risks of forest fires and snowstorms are lower compared to other states, which depresses the premiums. Annual home insurance rates in Pittsburgh are slightly above the national average at $ 741, while Philadelphia rates are $ 1,151, largely due to the higher incidence of theft and vandalism.

8. New Jersey

Average annual premium: $ 751
Percent of median household income spent: 0.86%
Percentage below the national average: 43%

New Jersey home insurance premiums are surprisingly among the cheapest in the United States, despite the fact that the entire state is at high risk of flooding. Last year, nearly 2,000 forest fires were also recorded that burned nearly 12,000 hectares of land. Annual insurance rates in Newark are $ 868, while premiums in Jersey City are $ 824 per year, both above the state average.

9. Wyoming

Average annual premium: $ 805
Percent of median household income spent: 1.24%
Percentage below the national average: 39%

Wyoming registered 828 forest fires last year, which is relatively low compared to other western states. However, the damage is among the highest in the country, burning a total of 340,000 acres. Even so, annual home insurance rates in Wyoming are nearly 40% cheaper than the national average.

10. Nevada

Average annual premium: $ 822
Percent of median household income spent: 1.16%
Percentage below the national average: 37%

Annual home insurance rates in Nevada are about 37% cheaper than the US average, although many areas of the state are at risk of flooding. There is also a relatively high earthquake risk in the western part. Another thing that many Nevada homeowners may have to endure is periods of extreme heat during the year. Annual home insurance prices in Reno are below the state average at $ 782, while premiums in Las Vegas are slightly higher at $ 905.

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