Which States Have the Cheapest Homeowners Insurance?

The national average cost of homeowner's insurance for a $250,000 residence is $1,381 per year. However, the cost of your homeowner's insurance depends on a number of variables. Location plays a vital role in determining premiums. Some regions of the country are more susceptible to natural disasters, while others may have higher reconstruction expenses. In addition, your coverage choices, such as your dwelling limit, play an essential role in setting your final home insurance premium.

To understand how much your house insurance coverage may cost, it may be helpful to examine the average rates in each state. Some states may not face the danger of natural catastrophes, while others may have a lower cost of living, which makes rebuilding after a claim more reasonable. Home insurance with $250,000 in dwelling coverage can cost less than $700 per year in Hawaii, Utah, and Vermont but more than $2,000 per year in states like Louisiana, South Carolina, and Arkansas.

Hawaii, Utah, Vermont, Delaware, and Oregon have the cheapest average annual premiums for homeowners insurance. Consequently, how much should you spend on homeowner's insurance in these areas? These states have average annual premiums of less than $1,000, likely due to a minimal risk of property damage from natural catastrophes such as tornadoes, hurricanes, and wildfires. You can compare the average cost of house insurance coverage in these states to the national average in the table below.

Hawaii: $378 annually - 73% less than the national average
Utah: $668 annually - 52% less than the national average
Vermont: $668 annually - 52% less than the national average
Delaware: $681 annually - 51% less than the national average
Oregon: $704 annually - 49% less than the national average

Still, there are many methods to work towards lowering your home insurance. Be sure to discuss them with your agent.