Home Insurance Premiums Rise in 30 States

As inflation grips the country, the price of everything has been going up and home insurance is no exception.

According to QuoteWizard, an online insurance marketplace and subsidiary of LendingTree, rates have increased at least 34% in some areas of the country as revealed in their new State of Home Insurance Report.

In order to compile the report, QuoteWizard analyzed homeowners insurance rates from every major carrier in every state.

On a national level, the average cost of homeowners insurance is $1,766, up just 2% from the prior year, but many states have seen more dramatic increases.

"Prices have changed wildly in the last year. Depending on where you live you could be paying a lot more or a lot less. We've seen everything from a 25% decrease in Kentucky to a 34% increase in Idaho," said Nick VinZant, Sr. Research Analyst with QuoteWizard.

The most expensive state to insure the average home was found to be Oklahoma, where annual premiums topped $3,735; Hawaii was found to be the cheapest state where premiums averaged $412.

Idaho had the largest increase in home insurance premiums at 34% while Kentucky experienced the largest decrease in home insurance premiums at -25%.

Overall California’s home insurance premiums dropped 8% from $1,018 to $934.

Another national statistic: insurance prices decreased in 16 states but increased in 30.

QuoteWizard's report also highlights a growing problem facing many homeowners. Home prices and material costs have risen so quickly, many people's insurance plans may no longer fully cover them.

"It now costs around $40,000 more to build the same home and if you haven't updated your coverage that extra cost is gonna come out of your pocket," said VinZant.

Only 3% of homeowners claims are liability claims, the other 97% are for property damage claims. The most common types of home insurance claims are: wind and hail (35% of claims, average cost $10,900); water damage (29% of claims, average cost $11,000); fire and lightning (25% of claims, average cost $78,000); other types of property damage (7% of claims, average cost $6,400); liability (3% of claims, average cost $22,400); and theft (1% of claims, average cost $4,300).