How Much Do Most Homeowners Insurance Plans Cost?

Owning a house is an expensive proposition. In addition to the monthly mortgage payments, you must pay for upkeep, repairs, and homeowners insurance.

Insuring your home is always a good idea to protect your investment and is required by mortgage companies until the loan is paid off. 

Here's a look at the cost of house insurance and some factors influencing it.

Homeowners Insurance Rates

You must pay nearly $1,400 a year for homeowners insurance on the average house valued at $250,000, according to Bankrate. 

Companies consider various factors when setting prices, and they all have different standards. Comparison shopping for homeowners insurance can save you hundreds each year, but costs are rising overall. 

The industry cites inflation, supply chain issues, and catastrophic losses from climate-related disasters for causing rates to rise.

Other Factors Involved

Other factors that companies consider when setting a house insurance rate include the age of the home, how much it would cost to rebuild it, what it's made of, and the fire rating of the location. 

Homes far from fire hydrants pay higher rates, and so do those made of especially expensive materials. Your claims history and the history of the location may also be considered. Your credit score is included in the calculation in most states.

Highest and Lowest

Hawaii, where prices for most goods and services are higher than average, usually has the lowest house insurance rates. Prices there could be less than half the average. 

The unlucky homeowners of Oklahoma pay the highest rates. They may pay nearly three times the average. Alabama and Arkansas are among other states where rates are high. 

No matter where a home is located, the factors in the previous section are involved in calculations.

How to Lower Your Cost

Shopping around is the easiest way to lower the cost of your house insurance. You can also save by choosing a higher deductible or asking for a discount if you have multiple policies with the company. 

Sometimes, a small investment in safety and security devices like doorbell cameras, fire alarms, and deadbolts can also reduce rates. 

Additionally, when you don't file a claim for three to five years, you may qualify for a reduced rate with some companies.

Homeowners insurance is expensive, but understanding where you stand compared to the average may ease your mind. If you're paying too much, you can often reduce your cost by shopping around and looking for discounts. 

House insurance isn't sexy or exciting, but you may find saving hundreds every year worth your time.

Ways To Save Money On Your House Insurance Monthly

Are you tired of receiving a hefty home owner's insurance bill in the mail each month? If so, then you might be wondering what you can do to cut down on your home insurance premium and enjoy immediate monthly savings. Aside from shopping around for deals and discounts from other insurance companies, the good news is that there are some simple tips you can try out as a way of reducing your monthly home insurance costs. Not to mention, some of these tips can even increase the overall value of your home in the process.

Switch to Paperless Billing

Many home insurance companies these days offer a discount for policyholders who switch to paperless billing. After all, not only does this save the company money in printing costs, but it also saves trees and eliminates paper waste in the process! By switching to a paperless bill statement from your insurance company, you can simply receive this paperwork via e-mail, which you can then print out if needed.

Work on Your Credit

Believe it or not, insurance companies these days use one's credit score and credit history as a determining factor when it comes to the cost of one's insurance premium. Therefore, if you have less than perfect credit, consider taking steps to gradually increase your credit score over time. Doing so can lead your insurance premium to drop by a few dollars per month, which can add up to significant annual savings.

Update Your Home

If you live in an older home, then you are inherently at a higher risk to ultimately have to file a home owner's insurance claim. For this reason, owners of older homes cost more to insure. Fortunately, by making small updates, such as having new electrical wiring installed or better ventilation systems, you can drastically reduce the cost of your home insurance. Just be sure to report these updates and renovations to your insurance agent right away so that you can begin enjoying the savings.

Make Your Home Safer

If you do not already have some kind of security system in place, you may want to consider having garage alarms for home installed as a way of increasing security and reducing the chances of becoming a victim of a home invasion or burglary. Not to mention, most insurance companies offer substantial discounts for those who have security systems in place, so you can save money on your policy this way.

Bundle Your Insurance Policies

If you have other forms of insurance, such as vehicle or boat insurance, then you may be able to save a significant amount of money by bundling those packages through the same company. Check with your home owner's insurance company to see if they offer the other type or types of insurance that you need, and then take advantage of any bundling discount they may have.


Paying for home insurance can be a pain, but there are plenty of ways to reduce your monthly costs without sacrificing coverage in the process.