No Obligation and transparency 24/7. Instantly compare live rates and costs from our network of lenders across the country. Real-time accurate rates and closing costs for a variety of loan programs custom to your specific situation.
The average annual cost of homeowners insurance in the US is about $1,312 a year or $109 a month. But, the cost of coverage varies significantly based on state laws, your home’s location, and so much more.
In this blog post, we will go over the cost of homeowners insurance, what is included in the average rate/policy, and what top 3 factors can affect the overall cost.
As a soon-to-be homeowner, it is very important that you understand what homeowners insurance is and if you need it. And if you are, in fact, currently in the market for a new home, you should definitely make sure that you have this type of coverage sooner rather than later.
In general, a homeowners insurance policy will protect your home, its contents, and financial losses from fire, theft, and other covered risks. It also commonly includes protection against liability. In short, homeowners insurance provides financial protection for both the house itself as well as the structures on the property.
Now that you know what homeowners insurance is, you are probably curious what the cost of coverage will be in 2022. Will the rate be lower or higher than what you are paying today? Before answering this question, it is critical to understand why home insurance costs will increase and how much they will go up.
According to 2022 insurance carrier data, the average annual premium for homeowners insurance is $1,312 (about $109 monthly), based on policies with dwelling coverage limits of $250,000. But what does that mean for you?
As briefly mentioned, the cost to insure your house does vary in comparison to the national average. For instance, if you reside in Washington State, you can expect to pay $863 to $1,205 annually or $72+ a month.
Likewise, if you live in other popular states like Colorado, your homeowners insurance can easily cost you $1,659 to $2,098 annually or $138+ each month. Yet, states like Oregon ($712 to $912 a year or $59+ a month) and Idaho ($835 to $1,038 a year or $70+ a month) are considerably less.
| Home insurance company | Average annual premium | Average monthly premium |
| State Farm | $1,503 | $125 |
| Allstate | $1,458 | $122 |
| USAA | $992 | $83 |
| Farmers | $1,980 | $165 |
| Travelers | $1,269 | $106 |
| American Family | $1,295 | $108 |
| Nationwide | $1,042 | $87 |
| Chubb | $1,630 | $136 |
| Erie Insurance | $897 | $75 |
| Auto-Owners | $1,165 | $97 |
But it does not end there, the cost of insuring your new home also differs depending on your city. In much-after metropolitan areas such as Seattle, WA, and Denver, CO, you can expect to pay anywhere from $1,151 ($96/month) to $2,531 ($211/month) a year for your home insurance policies. Note, the cost of homeowners insurance depends on which insurance company you go with as well.
Overall, the top ten largest US homeowners insurance companies’ average annual rate is over $1,000. When it comes to insurance companies, it is important to note that homeowners insurance may not be available in all states (for the above-mentioned providers).
What’s more, any homeowners insurance company that you can think of will set their own rates, so homeowners insurance premiums will vary from company to company, even within the same state and ZIP code. Consequently, when it is all said and done, your 2022 home insurance budget here should be around $100 to $200/month.
Even if you are a homeowner, the topic of home insurance can be confusing at best. The cost can vary widely depending on your location and the value of your home, as well as which coverage options you include in your policy. That said, homeowners insurance plans typically include relatively standard plan areas–dwelling, personal property or belongings, and other structures.
Your plan likewise covers loss of use or additional living expenses protection and will pay for you to remain in a different place when your house is uninhabitable due to covered loss/property damage. Additionally, standard policies cover or offer coverage for personal liability and medical bills for injured persons on your property, regardless of fault.
Many people believe that their home insurance rate is simply based on the cost of replacing their home. But the truth is that your home insurance policy covers much more than that. Furthermore, there are a number of factors that determine what your insurance rate will be. The top three factors that insurers look at to determine homeowners insurance rates, however, are pretty straightforward—your home, where you live, and special home features.
When it comes to your house, if you purchase an older home, bought a new one with the latest security features, or even if it is a new build—the price of your homeowners policy will likely fluctuate.
Besides your future home, the next biggest factor that affects the cost of your homeowners insurance policy is where you live. For example, location details like crime rates, the distance from your new home is from emergency services, and the likelihood of natural disasters—all fall under this category.
If your new house has special features, like a swimming pool or a trampoline, this is also something that your insurance company will look at when assessing your rate.
Of course, there are a whole host of other factors that play a role in figuring out your home insurance quote and actual homeowners insurance rate. But, typically, these are the top three concerns.
A few other notable factors include if you have a dog, the condition of your home’s roof, any energy efficiency or safety upgrades, and more. Note, your desired coverage limit, deductible, credit history, any bundling discount, and your claim history are additional factors to keep in mind as well.
Ultimately, the average annual price of homeowners insurance coverage in the US, no matter the year, will vary—based on state laws, your home’s location, and more. Nevertheless, with the true cost of homeowners insurance in mind, remember that insuring your home does not have to be expensive.
In fact, there are several ways you can reduce the cost of homeowners insurance and save money–in addition to bundling all your insurance policies (auto, home, etc.) with one company and selecting the right coverage options.
Whether you choose to shop around for an agent or to get a quote, ask for insurance discounts, improve your credit score, or increase your deductible, you can insure your new home in 2022 for an affordable price.
Do you have homeowners insurance questions or need more information on how to get a homeowners insurance quote? If so, Sammamish Mortgage can help. We are a local mortgage company from Bellevue, Washington, serving the entire state, as well as Oregon, Idaho, and Colorado. We offer many mortgage programs online to buyers all over the Pacific Northwest and have been in the business of doing so since 1992. Contact us today with any questions you have about mortgages.
Whether you’re buying a home or ready to refinance, our professionals can help.
{hours_open} - {hours_closed} Pacific
No Obligation and transparency 24/7. Instantly compare live rates and costs from our network of lenders across the country. Real-time accurate rates and closing costs for a variety of loan programs custom to your specific situation.