For policies that go into effect on or after April 1st, 2020, the average cost of homeowners insurance for a 12-month policy from the insurers in Progressive’s network ranges from $999 ($83/month) to $1655 ($138/month). The price range is a result of a number of variables, such as location, claims history, coverage limits, and the features of your home.
What does homeowner’s insurance cost?
Our analysis of 2022 home insurance rates from across the nation shows that the average cost of homeowners insurance in the U.S. is $158 per month or $1,899 per year for a policy with $300,000 in dwelling coverage.
However, the price of home insurance is increasing.
Our report on home insurance pricing, which was published in July 2022, found that rates are rising across the board, in part because of inflation, rising labor and construction costs, and a rise in natural disasters.
90% of homeowners experienced an increase in home insurance costs from May 2021 to May 2022, with the average increase costing an additional $134 per year.
What elements influence the cost of homeowners insurance?
Your location, the materials used to build your home, the coverage options, and any prior claims can all affect how much your homeowners insurance will cost. For more details on the factors influencing homeowners insurance pricing, see the list below:
Location
The cost of homeowner’s insurance often varies by geographic area and even ZIP code. You may have to pay a higher premium for homeowners insurance if you live in a state that frequently experiences extreme weather problems like tornadoes, hurricanes, and hail. Homeowners insurance premiums are frequently more favourable in areas with lower construction expenses. Find out more about whether insurance covers damage from hurricanes or tornadoes and how homes insurance handles storm damage.
Additional local elements that could influence the cost of homeowners insurance include:
- Homes in coastal areas: Due to a higher probability of natural disasters, homes in coastal areas can sometimes be riskier to insure than ones inland.
- Your ZIP code’s crime statistics: This information can be used by your insurer to assess the likelihood that you will report a theft claim for lost personal goods.
- Homes close to woodlands and brush are more vulnerable to harm from wildfires and fallen trees.
proximity to a fire station and hydrant: A fire can be put out more rapidly if a water source is more easily accessible. - To rapidly determine the coverage limitations for a homeowners insurance policy, use our homeowners insurance calculator.
Home design
What kind of home do you have is one of the first inquiries a homeowners insurance will make. The cost of your homeowners insurance can rise as a result of improvements to your home’s structure and other characteristics.
Because they are less prone to fires and severe winds, concrete block dwellings, for instance, might be less expensive to insure than wood frame homes. To determine the risk of insuring the house, your insurer may also inquire about the flooring material, siding type, and even how you heat the house.
Constructing a roof
The kind, quality, and shape of your roof can have a significant impact on how much your homeowners insurance will cost. You can pay less for home insurance if your roof is made of less flammable asphalt shingles rather than cedar or wood shakes.
Gable roofs are more typical and typically less expensive to install than hip roofs, but they are more susceptible to wind damage. Hip roofs, which are more expensive to install but may result in cheaper homeowners insurance costs, are defined by having all sides slope downward.
Choices of coverage and prior claims
Insurance providers for homeowners look at previous claims you’ve made. As you are more likely to file or experience additional losses if you have multiple losses, you will probably pay a higher rate.
The coverage options and deductibles you decide on for your homes insurance could also affect the cost. Your insurance rate may not be much affected even if you are able to expand your coverage by thousands of dollars.
