The average cost of homeowners' insurance varies widely across the United States.
According to recent research by Los Angeles-based GOBankingRates, the median annual homeowners' insurance policy costs by state ranges from $348.95 to a whopping $2,024.40.
Homeowners' insurance average costs can vary widely within a state, within a city, and even in the same neighborhood. And not surprisingly, if your home is located in an upscale neighborhood, the property is pricier, meaning a higher insurance premium.
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There are many factors an insurance company uses to demine the price of a homeowners' policy, according to the Insurance Information Institute. The average cost to insure a home is based on:
- The square footage of the house and any additional structures.
- Building costs in the area.
- The home's construction, materials and features.
- The amount of crime in the neighborhood.
- The likelihood of damage from natural disasters, such as hail storms and hurricanes.
- The proximity of the home to a fire hydrant (or other sources of water) and to a fire station. Whether your community has a professional or volunteer fire service and other factors that can affect the time it takes to put out fires, are considered.
The average homeowners' insurance premium rose by 3.3 percent in 2014, following a 6.0 percent increase in 2013, according to a January 2017 study by the National Association of Insurance Commissioners.
10 states with the highest homeowners' insurance cost
It's difficult to find commonalities among these states — they're spread all over the country. However, because “location, location, location” is the real estate mantra, it's a key factor that determines how much homeowners' insurance is in your area — so the cost depends heavily on where you live.
Brownstone homes line a street in the Park Slope neighborhood in the Brooklyn borough of New York. (AP Photo/Mark Lennihan)
10. New York
Median annual homeowners' insurance policy: $957.95
A house located in Portland, Oregon. (AP Photo/Rick Bowmer)
9. Oregon
Median annual homeowners' insurance policy: $1,024.80
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Houses in South Burlington, Vermont. (AP Photo/Lisa Rathke)
8. Vermont
Median annual homeowners' insurance policy: $1,026.83
A house in Livingston, N.J., as photographed on Jan. 5, 2017. (AP Photo/Mel Evans)
7. New Jersey
Median annual homeowners' insurance policy: $1,038.45
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House colors poke through a black-and-white snow scape in Seattle's Madison Valley neighborhood, Monday, Feb. 6, 2017. (AP Photo/Ted S. Warren)
6. Washington
Median annual homeowners' insurance policy: $1,099.00
A subdivision of homes in Erie, Colorado, with the Rocky Mountains in the background.
5. Colorado
Median annual homeowners' insurance policy: $1,107.75
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A home for sale in Andover, Mass., on May 24, 2016. (AP Photo/Elise Amendola, File)
4. Massachusetts
Median annual homeowners' insurance policy: $1,255.10
Homes near a damaged seawall in Pacifica, California. (AP Photo/Eric Risberg)
3. California
Median annual homeowners' insurance policy: $1,678.60
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Former President Barack Obama and his family are leasing this nine-bedroom home in the Kalorama neighborhood of Washington, D.C. (AP Photo/Andrew Harnik)
2. District of Columbia
Median annual homeowners' insurance policy: $1,844.50
Houses in the Hawaiian homestead community of Papakolea in Honolulu. (AP Photo/Audrey McAvoy)
1. Hawaii
Median annual homeowners' insurance policy: $2,024.40
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10 states with the lowest homeowners' insurance cost
A house in the Detroit suburb of Southfield, Mich. (AP Photo/Carlos Osorio)
10. Michigan
Median annual homeowners' insurance policy: $446.60
In this May 21, 2014 photo, a sign sits in front of a new home for sale in West Des Moines, Iowa. (AP Photo/Charlie Neibergall, File)
9. Iowa
Median annual homeowners' insurance policy: $439.25
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In this Feb. 18, 2015 photo, carpenters Joe Znidarsic, right, and Joe Tominc cut wood for a new home under construction in Pepper Pike, Ohio. (AP Photo/Tony Dejak)
8. Ohio
Median annual homeowners' insurance policy: $431.90
John Nero, right, and Pam Nero stand together at the bottom of their new home's steps in Tuscaloosa, Ala., in this April 19, 2016 photo. The Neros lost their home April 27, 2011, when a deadly tornado hit their Tuscaloosa neighborhood. (AP Photo/Brynn Anderson)
7. Alabama
Median annual homeowners' insurance policy: $429.80
Related: U.S. homeowners' premiums to reach $91B for 2016
A worker for New Home Construction and Framing cuts lumber outside a new home being built near a farm on the west edge of Lawrence, Kan. (AP Photo/Orlin Wagner)
6. Kansas
Median annual homeowners' insurance policy: $425.60
A home with a reduced price for sale in a Carmel, Ind., neighborhood. (AP Photo/Michael Conroy, File)
5. Indiana
Median annual homeowners' insurance policy: $413.00
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A new home for sale in Little Rock, Ark. (AP Photo/Danny Johnston, file)
4. Arkansas
Median annual homeowners' insurance policy: $401.45
A home for sale in Oklahoma City. (AP Photo/Sue Ogrocki)
3. Oklahoma
Median annual homeowners' insurance policy: $395.50
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In this April 22, 2015 photograph, a pile of bricks sits in front the remodeled home of retired Winston Academy teacher Emily Eaves in Louisville, Miss., days before the first anniversary of a 23-tornado outbreak that devastated Winston County, killing 10 people in Louisville and surrounding areas and destroying 391 buildings. Rebuilding continues in the region, including in Louisville and Tupelo. (AP Photo/Rogelio V. Solis)
2. Mississippi
Median annual homeowners' insurance policy: $390.25
Wheeling, West Virginia (Photo: ALM Media)
1. West Virginia
Median annual homeowners' insurance policy: $348.95
According to GOBankingRates' research, the median cost of homeowners' insurance policies in every state corresponds exactly with the median home values in that state.
Related: 7 homeowners trends for 2017
Find out how the cost of your homeowners' insurance policy compares to the rest of the country. Here's a complete list of the median homeowners' insurance policy cost in each of the 50 states;
State Median Home Value Median HO Insurance Policy
| Alabama | $122,800 | $429.80 |
| Alaska | $265,200 | $928.20 |
| Arizona | $214,800 | $751.80 |
| Arkansas | $114,700 | $401.45 |
| California | $479,600 | $1,678.60 |
| Colorado | $316,500 | $1,107.75 |
| Connecticut | $242,300 | $848.05 |
| Delaware | $213,200 | $746.20 |
| District of Columbia | $527,000 | $1,844.50 |
| Florida | $198,000 | $693.00 |
| Georgia | $150,800 | $527.80 |
| Hawaii | $578,400 | $2,024.40 |
| Idaho | $180,200 | $630.70 |
| Illinois | $164,600 | $576.10 |
| Indiana | $118,000 | $413.00 |
| Iowa | $125,500 | $439.25 |
| Kansas | $121,600 | $425.60 |
| Kentucky | $131,300 | $459.55 |
| Louisiana | $222,541 | $778.89 |
| Maine | $138,800 | $485.80 |
| Maryland | $265,400 | $928.90 |
| Massachusetts | $358,600 | $1,255.10 |
| Michigan | $127,600 | $446.60 |
| Minnesota | $198,300 | $694.05 |
| Mississippi | $111,500 | $390.25 |
| Missouri | $138,000 | $483.00 |
| Montana | $193,700 | $677.95 |
| Nebraska | $143,600 | $502.60 |
| Nevada | $226,000 | $791.00 |
| New Hampshire | $235,300 | $823.55 |
| New Jersey | $296,700 | $1,038.45 |
| New Mexico | $167,600 | $586.60 |
| New York | $273,700 | $957.95 |
| North Carolina | $154,900 | $542.15 |
| North Dakota | $203,600 | $712.60 |
| Ohio | $123,400 | $431.90 |
| Oklahoma | $113,000 | $395.50 |
| Oregon | $292,800 | $1,024.80 |
| Pennsylvania | $156,700 | $548.45 |
| Rhode Island | $243,400 | $851.90 |
| South Carolina | $140,300 | $491.05 |
| South Dakota | $162,500 | $568.75 |
| Tennessee | $135,200 | $473.20 |
| Texas | $161,300 | $564.55 |
| Utah | $237,800 | $832.30 |
| Vermont | $293,379 | $1,026.83 |
| Virginia | $238,400 | $834.40 |
| Washington | $314,000 | $1,099.00 |
| West Virginia | $99,700 | $348.95 |
| Wisconsin | $158,800 | $555.80 |
| Wyoming | $193,900 | $678.65 |
| Source: GOBankingRates/Zillow, Dec. 19, 2016. | ||
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Jayleen R. Heft
Jayleen Heft is the digital content editor for PropertyCasualty360.com. Contact her at [email protected].
