Approximate Cost of Homeowners Insurance in 2023

Do you want to know the approximate cost of homeowners insurance in 2023? Homeowners insurance is one of the most essential types of insurance because it protects your home and belongings. Whenever someone buys insurance, homeowners insurance is usually the first thing they would buy.

Are you looking for homeowners insurance but unsure how much money you should prepare? Continue reading this article to find out how much money you need to sign up for homeowners insurance in 2023!

How Much is the Approximate Cost of Homeowners Insurance?

The price for homeowners insurance varies according to many factors such as the state you live in, the type of insurance coverage, your home, etc. However, the approximate cost of homeowners insurance between all states is $1,899 per year or around $158 per month. 

5 States With the Most Affordable Approximate Cost Of Homeowners Insurance

Some states get a cheaper price for homeowners insurance due to their low risk of natural disasters. So, which states have the most affordable approximate cost of homeowners insurance?

1. Hawaii

In Hawaii, you only need to pay around $364 – $490 annually. This price is 73% cheaper than the national average price for homeowners insurance and it is considered the lowest price of homeowners insurance in the whole country.

2. Vermont

The second most affordable state is Vermont with the price starting from $658 – $900 per year. Compared to other states, Vermont is 54% below the annual rate of the national average.

3. Delaware

The next on this list is Delaware with a 52% lower price than the national average rate. The price for home insurance in Delaware is around $679 – $875.

4. Utah

Due to the low risk of natural disasters, Utah’s annual cost for homeowners insurance is affordable, starting at $643 – $950, which is 51% lower than other states’ average rate.

5. Oregon 

Although the estimated cost of home insurance in Oregon has gone up due to the wildfire season, it is still 49% lower than the national average. The price starts from $723 – $905 per year.

5 States with the Most Expensive Approximate Cost Of Homeowners Insurance

In contrast, states that face a high risk of natural disasters like tornadoes, hurricanes, and wildfires, get a high cost for homeowners insurance. Those 5 states are:

1. Arkansas

Arkansas’ cost for homeowners insurance is around $2,123 – $ 3,020 per year. This is already higher than the nation’s average cost.

2. Texas

It is not surprising to see Texas, a state with a high risk of natural disasters on this list. Prepare money around $2,547 – $3,875 per year if you live in Texas and want to get homeowners insurance.

3. Nebraska

With a price of $2,591 – $ 3,710 per year, Nebraska made it on the list as a state with high-cost homeowners insurance.

4. Kansas

The second most expensive state on this list is Kansas. You have to be ready to pay around $2,955 – $3,094 annually for homeowners insurance.

5. Oklahoma

Oklahoma is the state with the highest approximate cost of homeowners insurance. The price starts from $3,651 – $4,365 per year. 

What Does the Approximate Cost of Homeowners Insurance Cover?

Although not all companies have the same policies, there are some similarities. Here are the common things that your homeowners’ insurance might cover:

1. Dwelling

Dwelling covers the cost to rebuild or repair your house if incidents such as fire or windstorms happened.

2. Other Structure

The next one, the other structure as the name suggested, covers the cost for your property not directly attached to the house like fences or sheds.

3. Personal Property

You can also file a claim for the damage to your belongings inside the house like furniture, electronics, kitchen appliances, and clothes.

4. Medical Payment

In the case of someone getting injured on your property, you can file a claim regardless of whose fault is it.

5. Personal Liability

This covers medical and legal expenses in case you hurt someone or destroy their property.  

6. Loss of Use

When your house is being repaired and you need to stay elsewhere, this coverage helps you to cover the cost of those additional living expenses. Be it hotel accommodation, transportation, and restaurant bills.

How to Lower the Approximate Cost of Homeowners Insurance?

If you feel the approximate cost of homeowners insurance is way too expensive, do not worry. Various ways can be done to lower your insurance cost. What are those? Let’s check it out.

1. Bundle Insurance

Bundling insurance, especially homeowners and car insurance, will save you money. Depending on the insurance company, you can save up around 5 – 25%. Thus, it is better to buy different insurance policies from 1 company.

2. Compare Home Insurance Quotes 

Every company has different ways of calculating the insurance cost. For that particular reason, it is a good idea to compare insurance quotes from multiple companies to find out the best one. Think about the price, customer reviews, and insurance coverage before deciding which company to choose.

3. Avoid Small Claims

While filling a claim is a reasonable thing to do, you should consider it well before doing so. This is because your history claim will determine the cost of your homeowners’ insurance.

Therefore, you better fix the damage by yourself if it is not too much. Think thoroughly before contacting your insurance company.

4. Keep Your Credit Stable

Make sure to pay your credit card on time, do not open new accounts, and take good care of your current credit card. Those efforts will be seen by the insurance company and they might lower your price at the next renewal date.

Have You Understood the Approximate Cost of Homeowners Insurance?

Based on the nation’s average rate, you need to prepare around $1,899 per year for homeowners insurance. 

However, you should take note that some states with a high risk of natural disasters will get a higher approximate cost of homeowners insurance. On the other hand, states with a low risk of natural disasters will be less expensive. 

So, think about which state you live in right now and its natural disaster risk. Calculate accordingly and contact the nearest insurance company in your area!