Most Expensive and Least Expensive States for Home Owner

Most Expensive and Least Expensive States for Home Owner Insurance 

Like any other commodity, there are several factors that impact the overall cost of home ownership. Whether it's due to location, proximity to popular areas or even state regulations on what can be covered under home owner insurance policies, there are some states that are naturally expensive and others that provide better value to home owners. Listed below are the top six states that rank among the least and most expensive US states for the average cost of annual home owner insurance. 

In general, home owner insurance policy rates are determined by three primary considerations, including the home owner's credit rating, the property value and the state in which they are located. When it comes to the average cost of home owner insurance based on location, a few items tend to impact the cost of coverage such as:

States commonly associated with natural disasters: On the average, you'll find that states that are prone to hurricanes, earthquakes and tornados are among the top 10 in average cost to insure. States with higher crime rates: It's also a fact that the cost of insurance is also impacted by a states average crime or home theft specifically. States with higher property value. Beach communities and larger metropolitan areas are among the highest average annual policy costs.

Considering these factors, noted below are the top five most expensive average home owners insurance annual policy costs:

Florida – average cost $1,471: Florida is one of the highest average insurance coverage rates due to the fact that they fall into all three categories. Florida is prone to large scale natural disasters (both Hurricanes and Tornados), has a lot of beach property and large metro areas.

Oklahoma – average cost $1,413: Oklahoma does not have many beaches or large metro areas, but it is the leading tornado average in the United States. In fact, Oklahoma has more tornados and in recent years, earthquakes as well per square mile than any other state.

Louisiana – average cost $1,391: Similar in many ways to Florida, this state is impacted by hurricanes greatly. The cost of home insurance is also impacted by a high home break-in or robbery rate.

Connecticut: average cost $1,329: With this state, home property value is one of the highest considerations of insurance coverage.

Colorado: average cost $1,298: Property value in Colorado has increased higher in the last 10 years than any other US state. However, it's inconsistent weather pattern including snow and aggressive thunderstorms in the area.

Noted below are the five least expensive average home owner insurance annual policy costs:

Oregon – average annual cost $656: The Insurance Services Office in Washington DC estimates that 98 percent of insurance claims are due to property damage. Since Oregon has the lowest average claims per capita in the US, their average cost is lowest.

Utah – average annual cost $672: Due to relatively good weather, low property value and fewer claims, Utah comes in second.

Idaho – average annual cost $713: Similar to Oregon and Utah, many states in the Western United States are among the most affordable in regards to insurance rates.

Nevada – average annual cost $718: Nevada's property value has dropped significantly since 2008. Although property value is slowly increasing, the cost of home insurance is steady.

Wisconsin – average annual cost $735: Although the state has heavy snow fall, the percentage of property damage claims are rather small in Wisconsin.

Average costs of home owner insurance can vary based on multiple parameters, so make sure to speak with your home owners insurance company to pick the protection plan best suited for your individual location and budget.

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