What Are Typical Homeowners Insurance Rates?

Homeowners insurance rates vary from state to state and locality. The very same house with similar dimension can attract different rates of home insurance. What it means is a house valued at $ 200,000 will have different rates of insurance depending on where it is located. It also varies from company to company.  It is best for a homeowner to be aware of the rates applicable in his state, as well as taking quotes from several companies before settling on one to buy the insurance.

You must also be aware that a typical homeowners’ insurance has these components:

  • Coverage for dwelling, which is the value of the insured unit
  • Deductibles, which means the amount you wish to share in case of claims
  • Liability, in case of any injuries caused to others in the course of living in the house.

So you can choose the extent of these converges to arrive at the insurance rates which you can afford and which is acceptable to the lender.

The most important factor that determines the rate of insurance is where you live. States which have more of hurricanes, tornadoes, earthquakes, high crime rate etc. attract higher rates of insurance.

For example, for a house valued at a dwelling cost of $200,000, provided with a Deductible of $1000 and a Liability of $100,000; the average rate comes to $1,230 whereas the highest rate in Florida may touch $3,580, followed by Louisiana at about $3,000. The lowest rate for the same amount of Homeowners insurance comes to as low as $340 in Hawaii and $590 in Vermont.  As you can see, there is a wide variation in the insurance cost.

Thus Florida and Louisiana turn out to be more expensive states, whereas peaceful island state like Hawaii and Vermont, turn out to be the least expensive ones. It would be wise to go through the state-wise list of home insurance rates, to know how the insurance rates in the state where you have your house.