The median annual income for those in the United States is approximately $74,600. However, there is a large disparity between regions when it comes to how well off Americans are, which can heavily influence property insurance costs and challenges in the area.

How does income impact property coverage?

  • Premiums: In areas with higher incomes, property values may trend higher. This results in elevated insurance premiums, since the cost of rebuilding or replacing property is likely also higher than in other areas.
  • Coverage options: Those who live in more affluent areas may opt to purchase higher limits of coverage or additional riders, like those for high-value possessions or special home features.
  • Advanced risk management: Wealthier homeowners have more resources to invest in advanced security systems, fire suppression systems and other risk mitigation measures, which can help reduce their premiums a bit and guard against future claims.
Higher-income states present a unique landscape for insurers as they navigate higher-value assets, diverse coverage needs and higher claims costs. In the slideshow above, we'll look at the U.S. states where people have the highest income, according to WalletHub. To determine the score for each state, Wallet Hub considered the following criteria: Average income of the top 5% (worth 50 points), median annual household income (25 points), and the average annual income of the bottom 20% (25 points). All values have been adjusted for the cost of living index (COLI).

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Brittney Meredith-Miller

Brittney Meredith-Miller is assistant editor of PropertyCasualty360.com. She can be reached at [email protected].

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