September 29, 2011

Average Cost of Home Owners Insurance By State

The cost of homeowners insurance varies surprising from one state to another.     The average cost in Texas is nearly 4 times as much as average for Idaho.   Thats a big deal that many people may not think of when looking at cost of living or moving from one region to another.   The Insurance Information Institute lists the average cost of homeowners insurance by state for the year 2008.  They got the information from the  National Association of Insurance Commissioners.  

Here is the list in alphabetical order :


Alabama   $     845
Alaska   $     856
Arizona   $     628
Arkansas   $     788
California*  $     911
Colorado   $     842
Connecticut   $     980
Delaware   $     535
D.C.  $     926
Florida*  $  1,390
Georgia   $     749
Hawaii   $     862
Idaho   $     387
Illinois   $     628
Indiana   $     658
Iowa   $     612
Kansas   $     916
Kentucky   $     601
Louisiana   $  1,155
Maine   $     572
Maryland   $     637
Massachusetts   $  1,026
Michigan   $     715
Minnesota   $     845
Mississippi   $     980
Missouri   $     788
Montana   $     721
Nebraska   $     814
Nevada   $     692
New Hampshire   $     647
New Jersey   $     691
New Mexico   $     703
New York   $     983
North Carolina   $     683
North Dakota   $     808
Ohio   $     565
Oklahoma   $  1,048
Oregon   $     439
Pennsylvania   $     586
Rhode Island   $     897
South Carolina   $     789
South Dakota   $     609
Tennessee   $     692
Texas*  $  1,460
Utah   $     432
Vermont   $     650
Virginia   $     604
Washington   $     471
West Virginia   $     638
Wisconsin   $     503
Wyoming   $     676

Source: © 2010 National Association of Insurance Commissioners (NAIC). Reprinted with permission. Further reprint or distribution strictly prohibited without written permission of NAIC.

Here is the list in rank order from least to most expensive :


Idaho   $     387
Utah   $     432
Oregon   $     439
Washington   $     471
Wisconsin   $     503
Delaware   $     535
Ohio   $     565
Maine   $     572
Pennsylvania   $     586
Kentucky   $     601
Virginia   $     604
South Dakota   $     609
Iowa   $     612
Arizona   $     628
Illinois   $     628
Maryland   $     637
West Virginia   $     638
New Hampshire   $     647
Vermont   $     650
Indiana   $     658
Wyoming   $     676
North Carolina   $     683
New Jersey   $     691
Nevada   $     692
Tennessee   $     692
New Mexico   $     703
Michigan   $     715
Montana   $     721
Georgia   $     749
Arkansas   $     788
Missouri   $     788
South Carolina   $     789
North Dakota   $     808
Nebraska   $     814
Colorado   $     842
Alabama   $     845
Minnesota   $     845
Alaska   $     856
Hawaii   $     862
Rhode Island   $     897
California*  $     911
Kansas   $     916
D.C.  $     926
Connecticut   $     980
Mississippi   $     980
New York   $     983
Massachusetts   $  1,026
Oklahoma   $  1,048
Louisiana   $  1,155
Florida*  $  1,390
Texas*  $  1,460

Source: © 2010 National Association of Insurance Commissioners (NAIC). Reprinted with permission. Further reprint or distribution strictly prohibited without written permission of NAIC. 

The * for CA, FL & TX are because each of the figures from those states are due to slight differences in how the numbers are recorded or reported.  So they are not a strict apples-to-apples comparison to other states.

Couple notes:  ThesseMcMansion is much more expensive to insure than a modest starter home.

Now lets look at the data graphically.  

Below is a map of the US showing each state with color code per the average insurance  rates
Green = Under $600
Yellow = $600 to $900
Red = Over $900



Now you can see that there is a large difference between states in the amount that homeowners insurance costs.   There are many reasons that insurance rates differ from state to state.  I assume that the primarily difference in costs is due to differences in the frequency of natural disasters.   Many of the things that insurance might pay for don't differ from state to state like fires or dog bites.   You can also see the huge bills that insurance companies can see for significant disasters like hurricanes and floods.   Other than natural disasters there can also be differences due to the average cost of housing.   The average cost of insurance will naturally be higher in California than in Idaho if everything else is equal.     Crime rates and government regulations can also impact the costs state by state.


Personally I live in a relatively low cost area for home insurance.   The Northwest has few natural disasters except for an occasional volcanic eruption.  Compare that to a state like Texas which can see hurricanes, tornadoes and hail storms.     

How does your home owners insurance compare?

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